Moody's upgrades Cemig

Moody's Investors Service said it upgraded the global scale rating for Companhia Energética de Minas Gerais to a Baa3 local-currency issuer rating from a Ba2 local-currency corporate family rating.

The outlook is stable. This concludes the review for upgrade that began on Aug. 11.

The upgrade results from Moody's recent upgrade of the level of supportiveness of Brazil's regulatory environment for regulated electric utilities, according to the agency.

Ratings reflect the company's healthy profitability and strong cash generation and integrated position as one of the largest utilities, the agency said.

The company's track record for managing cash outlays for capital expenditures and dividends to maintain debt at adequate levels also is a key consideration, the agency noted.

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