Moody’s rates AES Tiete notes Baa3

Moody’s Investors Service said it assigned a global scale Baa3 rating and Brazil national scale rating of Aa1.br to the AES Tiete SA’s senior unsecured amortizing R$450 million debentures.

The notes will be issued in up to three tranches with maturities of up to five years and the issuance could increase to up to R$157 million, subject to the book building process, Moody’s said.

The agency also said affirmed the company’s Baa3 global scale and Aa1.br Brazil national scale issuer ratings, along with the Baa3 and Aa1.br ratings on its R$300 million senior unsecured amortizing debentures with final maturity in March 2020 and R$498 million unsecured debentures due in May 2019.

The outlook is negative.

The ratings reflect AES Tiete’s adequate credit metrics for the rating category, the company’s expertise in the management of the generation business, the agency said, and its resilient access to the local banking and capital markets.

The outlook reflects the negative effects that the ongoing drought exerts on the company’s profitability, liquidity and capitalization, along with weak market conditions, Moody’s said.

© 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.