Moody's rates Jujeña de Energía B3

Moody's Latin America said it assigned a first-time corporate family rating of B3 on its global scale and A3.ar on its Argentina national scale rating to Empresa Jujeña de Energía SA. It also assigned a B3 global scale rating and an A3.ar Argentina national scale rating to the company's bank loan with Banco de la Nación Argentina.

The outlook is stable.

The agency said the ratings reflect the relatively stable provincial regulatory framework for Jujeña de Energía as compared to other federal regulated utilities, its historical low leverage and its strong credit metrics for its rating category.

These strengths are balanced against the small size of the company, the generally poorer economics demographics of the region served by Jujeña de Energía, the overall uncertain regulatory environment for the electric distribution sector in Argentina and the relatively challenging liquidity position of the company given its high reliance on short-term debt, Moody's said.

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