Moody's: Empresa Electrica view to stable

Moody's Investors Service said it affirmed the Ba3 corporate family rating and senior unsecured rating of Empresa Electrica de Guatemala SA.

The outlook was changed to stable from negative.

The outlook change was driven by a belief that the company's capital structure will not change materially after the October 2010 acquisition by the Colombian multi-utility group, Empresas Publicas de Medellin, Moody's said.

The action further reflects a belief that the company's relationship with the Guatemalan regulator, Comision Nacional de Electricidad should improve following the change in ownership, particularly given the litigious relationship that had developed with previous owners, the agency said.

The agency also said it expected an improvement in its cash from operations following the recovery of previously deferred power procurement costs.

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