Moody’s lifts Light national scale ratings

Moody's America Latina said it confirmed the B1 global scale corporate family rating of Light SA and the B1 global scale issuer ratings of its operating subsidiaries Light Servicos de Eletricidade SA (Light SESA) and Light Energia SA.

At the same time, the agency upgraded the national scale ratings of Light and Light SESA to Baa1.br from Baa3.br, and of Light Energia to Baa1.br from Baa2.br.

The outlook is positive.

Moody’s said the and the positive outlook reflects its expectation that Light SESA's fourth tariff review and concession contract amendments will result in an improved liquidity profile for the company leading to a sustainable headroom under financial covenants in the coming quarters.

The action also reflects the agency's expectation that Light's credit metrics will progressively strengthen as a result of the stronger cash flow from operations before working capital change that will result from the tariff review and improved consumption trends.

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