Moody's could cut Eletropaulo

Moody's America Latina said it placed Eletropaulo Metropolitana de Eletricidade de Sao Paulo SA's Baa3 issuer rating on the global scale, and Aa1.br on the national scale rating on review for downgrade.

At the same time, Moody's placed the ratings of Eletropaulo's R$750 million senior unsecured debentures of Baa3 on the global scale and Aa1.br on the national scale, as well as the ratings of the company's R$400 million subordinated debentures of Ba1 on the global scale and Aa2.br on the national scale, on review for downgrade.

The current Baa3 issuer rating reflects the company's relatively stable operating cash flows from its long-term electricity distribution concession in Brazil's wealthiest municipality as well as the company's track record of successfully accessing the local banking and capital markets.

Moody's said the review for downgrade reflects the deterioration of the company's credit metrics.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.