Moody's downgrades Light

Moody's Investors Service said it downgraded the corporate family rating of Light SA and the issuer ratings and backed senior unsecured ratings of its operating subsidiaries Light Servicos de Eletricidade SA (Light SESA) and Light Energia SA to B3 from Ba3.

The agency placed all their ratings under review for further downgrade. The outlook for the companies was stable before the review.

“The downgrade of Light's ratings to B3 reflects the lack of visibility into the company's financing strategy to address upcoming debt maturities, amid tighter credit market conditions and higher funding costs. The review for further downgrade follows Light's announcement to the market On Jan. 31, 2023, that it had hired Laplace Financas consulting firm to explore possible financial strategies in order to improve its capital structure. In face of the unclear design of the company's financial strategy, Moody's deems the safeguard of debtholders interest at a risk level that is no longer consistent with a Ba3 rating,” the agency said in a press release.

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