Moody's rates CTM notes Baa3

Moody's Investors Service said it assigned a Baa3 foreign-currency senior rating to the proposed issuance of up to $450 million 10-year senior notes due 2023 by Peruvian Consorcio Transmantaro. The outlook is stable.

Proceeds will be used to repay loans.

The agency said the Baa3 rating reflects CTM's modest size but also the low business risk profile of its transmission operations, its main source of revenues. It further captures Moody's view that the Peruvian regulatory framework is overall credit supportive, although the agency said its opinion is tempered by its limited track record and some inconsistency in the application of some of the regulatory mechanisms.

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