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Prospect News home > News index > List of issuers C > Headlines for Companhia Energética de Minas Gerais (Cemig) > News item |
Moody's may downgrade Cemig
Moody's Investors Service said it placed the Baa3 and Aa1.br issuer ratings of Companhia Energética de Minas Gerais, Cemig Distribuição SA and Cemig Geração e Transmissão under review for possible downgrade as a result of the recent announcement of the acquisition of up to 65.86% of the total capital of Terna Participações SA.
The agency said the total cost of this acquisition might reach around R$3.5 billion, as minority shareholders are expected to exercise their rights to sell the shares at the same price offered to Terna's controlling shareholder, Terna SpA, in accordance with the current legislation.
Moody's review will focus on the impact of this acquisition on the company's credit metrics, liquidity and debt profile while also evaluating the expected growth in internal cash generation of the combined companies with the higher level of debt.
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