Moody’s changes Aguas de Itapema view to negative

Moody’s Investors Service said it change the outlook to negative from stable and affirmed the corporate family ratings of Ba3 on the global scale and A2.br on the national scale of Companhia Aguas de Itapema.

Moody’s also affirmed the Ba2/Aa3.br ratings assigned to the company’s senior secured debentures.

“The change in outlook to negative reflects a combination of factors that threaten the ability of Aguas de Itapema to maintain credit metrics, including a protracted and contentious regulatory process to review the company’s tariffs and contractual rebalancing of the concession agreement. In addition, the company faces various delays to complete pending investment projects that would bring additional revenues,” Moody’s said in a press release.

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