Moody's upgrades Empresa de Electricidade da Madeira

Moody's Investors Service said it upgraded the long-term corporate family rating of Empresa de Electricidade da Madeira SA (EEM) to B1 from B2.

Moody's also changed the outlook to stable from positive.

The upgrades follow the similar upgrade on the autonomous region of Madeira to Ba3 from B1.

The one-notch upgrade reflects the close linkage between the government and the company, Moody's said.

The upgrade also considers the strengthening of its credit profile, the agency said.

The rating also takes into account the standalone credit quality of the company's low business risk profile and position as the dominant vertically integrated utility in the region, Moody's said.

The rating is further constrained by the company's high leverage and reliance on short-term credit facilities, the agency said.

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