Moody's gives Transmision Austral Baa2

Moody's Investors Service said it assigned a Baa2 issuer rating to Sociedad de Transmision Austral SA (STA).

“The Baa2 issuer rating considers STA's consolidated low business risk profile and credit-supportive regulatory framework for transmission assets in Chile, the relative position of the company's assets within the electricity network system in the country and the group's track record of operations and financing strategy. The credit profile also takes into consideration the high predictability of cash flows, with over 70% of revenues derived from regulated markets (national and zonal system) that are not subject to volume risk.

“The credit profile is balanced by the company's asset's location that is geographically dispersed within the Chilean Zonal System (60% of revenues), which in Moody's view could potentially create more complex and challenging operations as compared to assets that are more integrated within the Chilean National Transmission System,” the agency said in a press release.

The outlook is stable.

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