Moody's rates AES Tiete Energia notes Ba2/Aa1.br

Moody's Investors Service said it assigned ratings of Ba2/Aa1.br to AES Tiete Energia SA's planned issuance of R$2.2 billion senior unsecured debentures with final maturity in 2029.

The outlook remains stable.

The fully-amortizing debentures will have three tranches with up to 10-year maturity.

The proceeds from the transaction will be mostly used to refinance existing debt obligations as well as for payment and reimbursement of expenses related to the Guaimbe and AGV solar projects, the agency said.

The ratings reflect AES Tiete's overall predictable and strong cash generation that leads to adequate credit metrics for the rating category, as well as its resilient access to the local banking and capital markets, Moody's said.

The ratings also consider AES Tiete's historical high dividend payout and the potential cash outflow of the judicial dispute over the spot market exposure, the agency said.

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