Moody's turns EPM outlook to stable

Moody's Investors Service said it changed the outlook on Empresas Publicas de Medellin ESP to stable from negative and affirmed the Baa3 global scale issuer and senior unsecured ratings.

“The rating action reflects Moody's view of stability on EPM's credit quality following the Ituango hydro plant's construction progress, which achieved an 87% completion progress as of January 2022. The construction advancements reduced uncertainties on the degree of damage to existing infrastructure and total costs required for project completion. Moody's recognizes that Ituango's development still faces some construction challenges, as related to the spillway and water deviation tunnels. Nonetheless, Moody's considers there are enough incentives in place to mitigate the remaining execution risks, so that at least one of the eight engines will start operations during 2022,” the agency said in a press release.

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