Moody's upgrades REN

Moody's Investors Service said it upgraded REN- Redes Energeticas Nacionais, SGPS SA’s long-term issuer rating and the senior unsecured debt ratings to Baa2 from Baa3. Concurrently, the agency raised REN’s senior unsecured medium-term note program to (P)Baa2 from (P)Baa3.

Moody's also boosted to Baa2 from Baa3 the backed senior unsecured ratings and to (P)Baa2 from (P)Baa3 the backed senior unsecured MTN program rating of REN Finance BV. The outlooks on REN and REN Finance have been changed to stable from positive.

“Today's rating action reflects Moody's expectation that REN is likely to maintain key credit metrics in line with the guidance for the Baa2 rating over the next three years following the start on Jan. 1, 2022 of a new four-year regulatory period for electricity transmission in Portugal,” the agency said in a press release.

The outlook reflects a forecast for credit metrics of FFO/net debt above 12% and net debt/regulated asset base not above the high seventies in percentage terms, Moody’ said.

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