Moody's cuts Aegea

Moody’s Investors Service said it downgraded Aegea Saneamento e Participacoes SA's national scale senior unsecured and Manaus Ambiental SA’s backed senior unsecured ratings to Aa2.br from Aa1.br.

At the same time, Moody´s affirmed Aegea’s corporate family rating at Ba1 and the Ba2 rating assigned to Aegea Finance Sarl's senior unsecured bonds, backed by Aegea. The agency also affirmed the corporate family rating at Aaa.br on the national scale. The outlook for all ratings changed to negative from stable.

“The rating actions and outlook change to negative follow the company's successful bid, on the April 30th auction, for water and sewage utility concession services in sections one and four of the metropolitan area of the municipality of Rio de Janeiro, currently served by Companhia Estadual de Aguas e Esgotos do Rio de Janeiro (Cedae, not rated). The award is subject to a total concession fee of R$15.4 billion, of which 65% is to be paid over the next 60-90 days, 15% in 180 days and the remaining in 2025, “Moody’s said in a press release.

Moody’s noted its ratings actions also mirror Aegea’s stronger appetite and its shareholders for continued growth in Brazil's sanitation sector along with a more aggressive financial policy.

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