Moody’s upgrades EEB to Baa2

Moody's Investors Service said it upgraded Empresa de Energia de Bogota SA ESP’s (EEB) senior unsecured rating to Baa2 from Baa3 and baseline credit assessment to baa3 from ba1.

The outlook is stable.

Because the District of Bogota is EEB's majority shareholder, EEB falls under the scope of Moody's rating methodology for government-related issuers.

The Baa2 senior unsecured rating reflects the application of Moody's joint default analysis framework for government-related issuers. This takes into account the following four input factors: (a) The District of Bogota sub-sovereign Baa2 rating as the support provider; along with a (b) strong probability of extraordinary support from the municipality; and (c) moderate level of dependence; as well as (d) a base credit assessment of baa3 as a measure for EEB's standalone creditworthiness.

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