Moody’s lifts Inter RAO

Moody's Investors Service said it upgraded to Ba1 from Ba2 the corporate family rating of PJSC Inter RAO, along with its probability of default rating to Ba1-PD from Ba2-PD.

The outlook is negative.

Inter RAO's corporate family rating now is at the same level as the Russian sovereign rating of Ba1 with a negative outlook, the agency said.

The upgrades reflect the company's track record of reporting strong credit metrics since the beginning of 2015, Moody’s said, and an expectation that the company's credit profile will continue strengthening in the next 12 to 24 months.

As of June 30, the company's adjusted debt-to-EBITDA declined to 1x from 1.3x in 2015, the agency said.

This was underpinned by the commissioning of new capacities built under capacity supply agreements with the Russian state, which allows for payments over the next 10 years, Moody’s said.

The ratings remain constrained by the challenging economic environment in Russia expected in the next 12 to 18 months with anemic growth of gross domestic product expected in this period, the agency said.

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