Moody’s upgrades Statkraft, view to negative

Moody’s Investors Service said it upgraded the corporate family ratings of Statkraft Energias Renovaveis SA to Ba3/A1.br from B1/Baa1.br and changed the outlook to negative from developing.

The upgrades stem from the material reduction in the company’s consolidated debt and the implicit support of its major shareholder, Norway’s Statkraft AS, Moody’s said.

The material reduction in the company’s consolidated debt in 2015 resulted from the capitalization of R$155 million and the sale of the company’s 25.5% share in two transmission companies for R$151 million, the agency said.

Moody’s said it forecasts that consolidated credit metrics will significantly improve over the next two years as a result of the prevailing high operating margins associated with materially lower debt than in the recent past and expectations that capital expenditures will be restricted to maintenance levels through mid-2017.

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