Moody's rates Transenergia Sao Paulo notes Ba1

Moody's Investors Service said it assigned Ba1 global scale and Aaa.br on the Brazilian national scale senior secured ratings to the planned first issuance of debentures by Transenergia Sao Paulo SA of R$112 million due in 11.5 years.

“The Ba1/Aaa.br ratings assigned to the proposed issuance reflect the stable and predictable revenue stream dictated by the availability-based contractual structure, annually adjusted by inflation (IPCA); low complexity of operations and observed track record since start of operations in August 2012; and the expectation of average debt service coverage ratio (DSCR) of 1.3x according to Moody's methodology, during the period in which most principal is amortized (2022-2032),” the agency said in a press release.

The proceeds will be used to prepay all debt outstanding at the project level and upstream resources to shareholders through dividends and a capital reduction.

The outlook is stable.

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