Moody's changes EPM outlook to positive

Moody's Investors Service said it affirmed the Baa3 issuer and senior debt ratings of Empresas Publicas de Medellin SA ESP and changed the outlook to positive from stable.

The agency said the rating action acknowledges the positive progress in EPM's material hydro-electric Ituango project following the successful deviation of the Cauca river, a significant milestone in the project development achieved in February. Furthermore, Moody's believes that EPM is considering the implementation of an accelerated construction strategy to ensure that the first unit starts operations as planned in December 2018.

The agency said EPM's ratings and positive outlook are further supported by Moody’s expectation that EPM's key credit metrics, despite some expected deterioration, will remain commensurate with the lower end of the Baa category.

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