Moody’s revises EDA view to positive

Moody's Investors Service said it changed the outlook on the Ba3 long-issuer rating of EDA - Electricidade dos Acores, SA to positive from stable and converted the issuer rating into a corporate family rating in line with the agency's practice for corporates with non-investment-grade ratings.

Concurrently, the agency withdrew the Ba3 issuer rating.

“The outlook change to positive reflects Moody's view that EDA should be able to sustain a stronger financial profile against the background of a gradually improving local economy,” Moody’s said in a news release.

“It factors in Moody's assumption that the forthcoming settlement for the regulatory period starting from 2018 will extend the regulatory framework's track record of continuity and transparency, which is a supporting factor for EDA's rating. This would allow the group to fund the majority of its ambitious capital investment from internal cash generation, while also maintaining a financial profile consistent with guidance for a Ba2 rating.”

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