Moody's ups Bandeirante, Escelsa

Moody's Investors Service said it upgraded the issuer ratings of Bandeirante Energia SA and Espírito Santo Centrais Elétricas SA to Baa3 from Ba2 on the global scale and to Aa1.br from Aa3.br on its Brazilian national scale.

The agency upgraded EDP Energias do Brasil to a Ba1 local-currency issuer rating from a Ba2 local-currency corporate family rating and to an Aa2.br Brazil national scale issuer rating from Aa3.br.

The outlook is stable. This action concludes the review for upgrade begun on Aug. 11.

According to Moody's, the upgrade reflects the steady improvement in credit metrics over the past two years and recent upgrade of support of Brazil's regulatory environment for regulated electric utilities.

The Aa2.br national scale issuer rating reflects the standing of the company's credit quality relative to its domestic peers, the agency said.

The Ba1 issuer rating reflects the group's adequate credit metrics for this rating category, resilient access to the local capital markets and the strong ownership of its parent company EDP Portugal (A2/negative), the agency said.

The rating is constrained by the high 50% dividend payout ratio, a relatively sizable capital expenditure program and risks associated with the completion of the thermoelectric plant project, Moody's noted.

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