Moody's assigns Ba3 to Aegea notes

Moody's Investors Service said it assigned a Ba3 rating to the $500 million of sustainable and sustainability-linked senior notes due 2030 to be issued by Aegea Finance Sarl and guaranteed by Aegea Saneamento e Participacoes SA.

“The Ba3 rating assigned to the $500 million notes is one notch lower than Aegea's Ba2 corporate family rating (CFR), due to structural subordination since Aegea does not hold any operations and is strictly a vehicle for controlling stakes on the operating subsidiaries. Therefore, it relies on regular dividend payments from its operating subsidiaries to meet its obligations, including the debt service at the level of Aegea Finance,” Moody’s said in a press release.

Aegea will use the proceeds for planned capital expenditures of existing projects and to strengthen its cash balance.

The outlook is stable.

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