Moody's rates Transmision Austral notes Baa2

Moody's Investors Service said it assigned a first-time Baa2 rating to the planned up to $390 million of 10-year senior unsecured notes to be issued by Sociedad de Transmision Austral SA.

“The Baa2 rating considers STA's consolidated low business risk profile and credit-supportive regulatory framework for transmission assets in Chile, the relative position of the company's assets within the electricity network system in the country, the group's track record of operations and its financing strategy. The credit profile also takes into consideration the high predictability of cash flows, with over 70% of revenues derived from regulated markets (national and zonal system) that are not subject to volume risk,” Moody’s said in a press release.

The issuer plans to use the proceeds for a debt refinancing associated to its reorganization process, which includes the repayment of up to $335 million of its subsidiaries outstanding intercompany loans granted by the former parent, Grupo Saesa, and about $40 million for the partial prepayment of Sistema de Transmision del Sur SA’s local bonds, the remaining amount will be used for the payment of transaction fees and general corporate purposes.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.