Moody's rates Edenor notes B2

Moody's Latin America said it assigned B2/A1.ar ratings to Empresa Distribuidora Norte SA's (Edenor) up to $70 million of proposed notes. The notes are being offered under the 2022 bond offering and to complete the $300 million originally announced.

The outlook is stable.

Proceeds from the notes will be used to refinance the bridge loans the company was granted to finance its recently acquired subsidiaries from AIE.

The B2 and A1.ar ratings reflect Edenor's leading position as the largest distribution utility in the domestic electricity market in terms of number of clients and its conservative financial profile, the agency said.

The ratings consider the uncertainty that surrounds Argentina's electric industry due to the lack of transparency and predictability of the current regulatory framework, Moody's said.

While the recent acquisitions will further strengthen Edenor's position as the country's largest electric utility, the acquired companies should enhance Edenor's margins and EBITDA without increasing leverage substantially, the agency added.

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