Moody’s rates Aegea notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to the up to $500 million senior unsecured notes due 2029 to be issued by Aegea Finance Sarl and guaranteed by Aegea Saneamento e Participacoes SA.

At the same time, Moody's affirmed Aegea Finance's Ba2 senior unsecured rating as well as Aegea's Ba1 corporate family rating.

The outlook remains negative for all ratings.

“The proposed issuance has a similar structure to that of the company's senior unsecured notes due in 2024, which will be redeem with the proceeds from the offering (approximately $400 million outstanding) with the remaining amount used for general corporate purposes, likely funding capital expenditures of existing projects,” the agency said in a news release.

“The transaction structure encompasses a financial covenant test, where Aegea' consolidated net debt to EBITDA ratio has to be below 3.5x for the company to incur in additional debt, except for certain permitted indebtedness.”

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