Moody’s raises EDP to Baa3/Prime-3

Moody's Investors Service said it upgraded to Baa3/Prime-3 from Ba1/Not Prime the senior unsecured debt and issuer ratings of EDP – Energias de Portugal, SA, Hidroelectrica del Cantabrico SA and the senior unsecured debt ratings of EDP Finance BV.

The outlook is stable.

Moody’s said the upgrade is based upon progress on delivery of the group's deleveraging strategy against the background of a slowly improving Portuguese economy. It also factors in signs that the tariff deficit borne by Portugal's electricity system is gradually stabilizing, and the lower likelihood that further regulatory cuts will be needed.

Although risks to profitability growth remain, and the group is more levered than its incumbent peers in Europe, Moody's therefore estimates that EDP is on track to deliver a financial profile in 2015 consistent with an investment-grade rating.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.