Moody's upgrades Infraestruturas de Portugal

Moody's Investors Service said it upgraded the corporate family rating and the senior unsecured rating of Infraestruturas de Portugal, SA to Ba1 from Ba2, along with the rating of the €3 billion euro medium-term notes program to provisional Ba1 from provisional Ba2.

Moody's also said it upgraded the probability of default rating to Ba1-PD from Ba2-PD.

The agency also said it upgraded the rating of Infraestruturas de Portugal's €3 billion euro medium-term notes program, which provides for the issuance of government-guaranteed notes, to provisional Baa3 from provisional Ba1 and the senior unsecured rating of government-guaranteed notes to Baa3 from Ba1.

The outlook also was changed to stable from positive.

The ratings follow a recent decision to upgrade Portugal's government bond rating to Baa3 with a stable outlook from Ba1, Moody's explained.

The upgrades reflect a view that the government's ability to support the company has strengthened, the agency said.

This recognizes the strong linkages between the company and the government, which has provided significant support in the form of capital injections to the company over the years since the financial crisis started, Moody's said.

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