Moody’s changes EEP outlook to positive

Moody's Investors Service said it affirmed the Baa3 senior unsecured rating of Empresa de Energia de Bogota SA ESP (EEB) and changed the outlook to positive from stable.

Moody’s said this action follows the recent upgrade of the District of Bogota's rating to Baa2 with a stable outlook. Because the District of Bogota is EEB's majority shareholder, EEB falls under the scope of the agency’s rating methodology for Government-Related Issuers.

The Baa3 ratings reflect the application of Moody's joint default analysis framework for government related issuers. This takes into account the following four input factors: (a) The rating of the District of Bogota; along with a (b) strong probability of extraordinary support from the municipality; and (c) moderate level of dependence; as well as (d) EEB's base credit assessment of ba1.

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