Moody’s changes Enel Americas view to positive

Moody’s Investors Service said it changed to positive from stable the outlook on Enel Americas SA. Moody’s also affirmed the company’s Baa3 senior unsecured rating.

The outlook change and rating affirmation reflect an expectation of improved operations and cash flow generation leading to continued deleveraging, already aided by the conclusion of the $3 billion capital increase closed in September 2019 and the subsequent prepayment of about $2.5 billion in debt. Leverage as measured by adjusted debt-to-EBITDA has declined to 1.9x as of September 2019 from 3.2x in December 2018.

“We expect further deleveraging to follow the continued improvement in operations and cash flow such that adjusted-debt to EBITDA reaches 1.5x as of 2022. The low leverage, coupled with geographic and sector diversification diminish the effects of ENIA’s increased presence in Brazil (Government of Brazil, Ba2 stable) which will represent 50% of the consolidated EBITDA generation by 2022,” said Moody’s in a press release.

The positive outlook and rating affirmation also factor in Moody’s expectation total adjusted debt will continue to fall following the planned reduction of the uncovered pension liabilities at Eletropaulo Metropolitana Eletricidade de São Paulo.

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