Moody's rates Furnas Centrais paper BR-1

Moody's America Latina Ltda. said it assigned a BR-1 national scale rating to Brazil-based Furnas Centrais Eletricas SA's proposed R$350 million six-month commercial paper notes issuance and affirmed the company's Ba1 global local-currency and Aa1.br national scale senior unsecured issuer ratings

The outlook is stable.

The net proceeds of the proposed commercial paper notes will be used for short-term liquidity purposes.

The BR-1 rating reflects Moody's view of the company's superior ability to repay its short-term obligations relative to its domestic peers based on strong and predictable cash flows backed by long-term contracts, good access to the financial market, as well as the historically strong support received from Centrais Eletricas Brasileiras SA - Eletrobras and the Brazilian Federal Government.

However, the agency noted that Furnas, similar to most Brazilian corporates, has no committed backup credit facilities in place to insure that, at the maturity of these notes, there is adequate liquidity in place, if needed.

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