Moody's confirms Energisa

Moody's Investors Service said it confirmed the Ba3 local-currency corporate family rating for Energisa SA and the Ba3 rating for the $250 million unsecured notes units jointly issued by Energisa Sergipe - Distribuidora de Energia SA and Energisa Paraiba - Distribuidora de Energia SA due 2013 and guaranteed by Energisa. The agency also said it confirmed Energisa's A3.br corporate family rating on the Brazilian national scale.

This concludes a review that began in August 2008.

The outlook is now stable.

The ratings reflect its strong credit metrics for the rating category, adequate liquidity and its stable and predictable cash flow from its monopoly electricity distribution business, Fitch said.

The ratings are constrained by the utility's lack of an effective financial policy to control risks associated with its foreign-currency debt obligations, large capital expenditures in 2009 and expectations that operating margins will be lower in the near term due to tariff revisions, the agency said.

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