Moody's assigns Eletropaulo debentures Ba1

Moody’s Investors Service said it assigned a Ba1 global scale rating and an Aaa.br on the Brazilian national scale to the proposed offering of R$720 million senior unsecured debentures due 2031 by Eletropaulo Metropolitana de Eletricidade de Sao Paulo SA (Eletropaulo).

“The Ba1/Aaa.br ratings assigned are in line with Eletropaulo's corporate family ratings (CFR) and reflect our view that the new debentures rank equal to Eletropaulo's outstanding senior unsecured debt. The Ba1 rating also reflects a one-notch uplift from Eletropaulo's stand-alone credit profile given the strong likelihood of support from Enel Americas SA (Baa3 positive) as its controlling shareholder; due to the company's strategic importance to the group and structural linkages with the parent evidenced by acceleration clauses embedded in the parent's debt in case Eletropaulo fails to service debt,” Moody’s said in a press release.

Eletropaulo will use the proceeds to finance capital expenditures.

The outlook is stable.

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