Moody's rates Light notes Ba1

Moody's Investors Service said it affirmed Light SA's global-scale corporate family ratings at Ba1 and Brazilian national-scale rating at Aa2.br.

Moody's also said it assigned a Ba1 global-scale issuer rating and Brazilian national-scale rating of Aa2.br to Light Serviços de Eletricidade SA, along with a global-scale local-currency rating of Ba1 and Brazilian national-scale rating of Aa2.br to Light SESA's proposed up to R$650 million of senior debentures due in five and seven years.

These debentures will be supported by the corporate guarantee of Light.

The outlook is stable.

The proceeds will be used to repay Light SESA's short-term debt maturities and to support its corporate investments, Moody's said.

The ratings reflect Light SESA's stable and predictable cash flows derived from its regulated distribution business, the agency said.

But, the ratings are constrained by the potential cash flow drains related to existing contingent liabilities and the challenges from high levels of energy losses and delinquency rates, Moody's added.

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