Moody's lifts Edenor, rates notes B2

Moody's Investors Service said it assigned a B2 corporate family rating to Empresa Distribuidora Norte SA (Edenor) and a B2 rating to its $250 million senior unsecured notes due 2017.

The agency also upgraded Edenor's local-currency debt rating to B2 from B3 on its global scale and to A1.ar from Baa3.ar on its national scale for Argentina.

The outlook is stable.

The proceeds from the new notes will be used to redeem Edenor's existing subordinated discount notes. The agency said the company is looking to improve its debt amortization profile and cost by extending maturity to 2017 at an interest rate below those practiced in the Argentine local debt market.

The upgrade is supported by Edenor's dominant position as the largest distribution utility in the domestic electricity market, its improved financial profile as a result of the recovery of the Argentine economy during the last three years and a recent 28% tariff increase for non-residential consumers, Moody's said.

The ratings also reflect that, despite the authorized 28% increase in the distribution tariff paid by non-residential customers recently approved by the Argentinean government, there are still uncertainties surrounding Argentina's electric industry due to the lack of transparency and predictability of the regulatory framework, the agency said.

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