Fitch dims Light ratings

Fitch said it downgraded the local-currency and foreign-currency issuer default ratings of Light SA and its wholly owned subsidiaries Light Servicos de Eletricidade SA (Light Sesa) and Light Energia SA (Light Energia) to CCC+ from BB-. Fitch also lowered their national scale ratings to CCC(bra) from AA-(bra) and the foreign-currency and local-currency debt instruments to CCC+/RR4 and CCC(bra).

“The downgrades reflect substantial credit risk for Light in making timely payment of principal and interest on its obligations following the announcement that it had hired Laplace Financas with the purpose to improving its capital structure and the more restrictive credit market due to Americanas' default. The confluence of these factors substantially reduces the group's ability to raise financing needs to support its expected negative FCF and debt amortization,” Fitch said in a press release.

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