Moody’s upgrades EDA to Ba2

Moody's Investors Service said it upgraded Electricidade dos Acores, SA’s (EDA) long-term corporate family rating to Ba2 from Ba3 and changed the outlook to stable from positive.

Moody’s said the upgrade reflects its view that the company should be able to sustain a solid financial profile supported by the latest settlement that reinforces the regulatory framework's track record of continuity and transparency.

Additionally, the agency factors in the gradual improvement of the economy in the Autonomous Region of the Azores (Regiao Autonoma dos Açores, or RAA; Ba2 positive), which is a supportive 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, Moody’s explained.

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