Moody's lifts EEM to positive

Moody's Investors Service said it changed to positive from stable the outlook on the B2 long-term corporate family rating of Empresa de Electricidade da Madeira, SA (EEM).

The agency also said it affirmed the company's B2 rating.

The action follows the recent change to positive on the outlook of the Autonomous Region of Madeira, which owns 100% of the company, Moody's explained.

The positive outlook reflects the close linkage between the region and the company, the agency said.

Moody's said it believes the region's ability to provide support to its subsidiary, if required, could rise if its credit profile were to strengthen.

The outlook change also considers that the company's baseline credit assessment represents the company's stand-alone credit quality and is solidly positioned at B2, the agency said.

This is supported by progress in the company's cutting of receivables and executing on its capital expenditure program, Moody's said.

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