Moody's upgrades Oncor

Moody's Investors Service said it upgraded the senior secured debt ratings of Oncor Electric Delivery LLC to Baa3 from Ba1.

The outlook remains stable.

Moody's said the upgrade is prompted by the issuer's decision to sell a 20% minority ownership stake in Oncor to an investor group led by Borealis Infrastructure Management.

The additional economic and corporate governance provisions that are expected to be incorporated into the ring-fence type structures of Oncor's existing operating agreement creates an incremental level of credit separation from its parent and affiliates beyond an already strong set of ring-fence type provisions, according to the agency.

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