Fitch dims Light outlook to negative

Fitch Ratings said it revised its outlook on Light SA, Light Servicios de Electricidade SA (Light Sesa) and Light Energia SA to negative from stable.

“The negative outlook reflects concerns about Light's ability to access new credit lines, given uncertainties on the renewal of Light Sesa's concession. Fitch considers the renewal in the base case, but expects relevant refinancing needs in 2023 and 2024, prior to the definition for the concession. Light Sesa's capacity to securitize its receivables may be an important source of funding in 2023, but may not be sufficient to support refinancing in 2024,” Fitch said in a press release.

The group will be challenged to preserve liquidity by reducing operating expenditures and capital expenditures, despite the potential harm to operation, the agency said.

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