Fitch gives BB- to Light, bonds

Fitch Ratings said it assigned long-term foreign and local currency issuer default ratings of BB- to Light SA and Light Energia SA and published the long-term foreign and local currency issuer default ratings of BB- to Light Servicos de Eletricidade SA (Light Sesa).

The agency also assigned a BB-(EXP) rating to Light Sesa's proposed $400 million senior unsecured Eurobonds and to Light Energia's proposed $200 million senior unsecured Eurobonds, both due 2023.

Fitch currently rates the three entities' long-term national scale rating A+(bra).

The outlook is stable.

The proposed Eurobonds will be guaranteed by the holding company Light and the proceeds will be used to cover upcoming debt maturities. Light Energia and Light Sesa are Light's wholly owned subsidiaries.

Fitch said the ratings reflect Light’s low to moderate business risk profile resulting from its exclusive electricity distribution rights in the metropolitan region of Rio de Janeiro through Light Sesa, combined with assets on the power generation segment at Light Energia adding to cash flow predictability and risk dilution.

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