Moody’s changes Cemig to stable

Moody’s America Latina said it confirmed the B3 global scale and B2.br Brazil national scale ratings assigned to Companhia Energetica de Minas Gerais (Cemig) and its subsidiaries Cemig Geracao e Transmissao SA (Cemig GT) and Cemig Distribuicao SA (Cemig D).

The outlook was revised to stable. This concludes the review for downgrade that began on Oct. 31.

According to the agency, the action reflects the combination of events that have addressed the corporate family's immediate liquidity/refinancing needs on debts due in December 2017.

Since the Oct. 31 action, Moody’s said the company has been able to (a) Build a book and price the $1.0 billion Eurobonds on Nov. 30, with financial close expected for Dec. 5; (b) reach an agreement with its key creditor banks to refinancing about R$3.9 billion of debts; (c) honor a substantial portion of the put option obligations related to Light SA (B1/Baa1.br positive) with the remaining portion rescheduled for late 2018; and (d) achieve significant progress in regards to a capital increase expected to raise a total amount of R$1.3 billion by Dec. 14.

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