Moody's rates Light notes B1

Moody's Investors Service said it assigned a B1 global scale rating to the $600 million notes units consisting of senior unsecured notes due 2023 to be issued at Light Serviços de Eletricidade SA (Light SESA) and Light Energia SA.

The proposed notes are guaranteed by the holding company, Light SA, and the proceeds will be used to cover upcoming debt maturities.

Light's B1 and Baa1.br corporate family ratings are unaffected.

The outlook is positive.

The proposed notes to be issued at Light SESA and Light Energia will be senior unsecured debt instruments and will be fully guaranteed by Light, Moody's said.

The B1 rating is in line with the Light's corporate family rating of B1 and Baa1.br and reflects the positive trends that the company has shown in reducing non-technical losses, the agency said.

The ratings reflect the company's reduced financial leverage, as shown by a reported net debt-to-EBITDA of 3.1x as of December 2017, down from 3.7x in prior year, Moody's said.

The ratings also consider the still high energy loss rates in the distribution segment, the agency said.

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