Moody's rates Edenor notes B2/A1.ar

Moody's Investors Service said it assigned B2/A1.ar ratings to Empresa Distribuidora Norte SA (Edenor)'s up to $300 million proposed notes.

The outlook is stable.

The new notes will be offered concurrently with an exchange offer, with proceeds to be used to refinance or repurchase most of Edenor's outstanding debt.

Moody's said the B2 and A1.ar ratings reflect Edenor's leading position as the largest distribution utility in the domestic electricity market and its conservative financial profile as indicated by its relatively low leverage.

Ratings also anticipate a continuation of volatile pricing and the possibility of a significant decline in the company's distribution margin due to the lack of timeliness with respect to cost recovery, the agency noted.

Edenor's B2 rating reflects its expected financial performance and its regulatory risk profile, the agency added.

Leverage ratios have increased slightly to 2.4x from 2.2x at fiscal year-end due to a combination of declining EBITDA and the effect of the peso devaluation on Edenor's dollar-denominated debt.

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