Moody's rates Babilonia notes Ba2

Moody's Investors Service said it assigned a Ba2 global scale and Aa1.br national scale ratings to Babilonia Holding SA's R$87 million senior secured debentures due in 2033.

The outlook is stable.

The ratings reflect a view of the project's robust cash flow profile that covers anticipated amortizing debt service and is supported by a regulated long-term revenue profile, along with its favorable location in the northeast of Brazil, an area with tested strong wind resources, Moody's said.

The ratings also consider the known quality and performance of Siemens Gamesa's wind turbine technology, the agency said.

The ratings are tempered by Babilonia's limited track record of operations, which only started in November 2018, Moody's said.

The ratings are constrained by Brazil's government bond rating due to the highly regulated nature of the energy sector and a view of the project's counterparty risk being closely aligned with the credit quality of the sovereign, the agency said.

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