Moody's rates EPM notes Baa3

Moody's Investors Service said it assigned a Baa3 local-currency rating to the 1.25 billion Colombian pesos of senior unsecured notes due 2021 issued by Empresas Publicas de Medellin SA ESP (EPM).

The outlook is stable.

The ratings reflect the fact that the company's baseline credit assessment of 11, mapping to Ba1, captures the anticipated material increase in leverage to fund the group's sizeable capital expenditure program and the progressive deterioration in strong historical credit metrics, Moody's said.

The ratings also consider its ownership structure and linkages with the City of Medellin, the agency said.

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