Moody's rates Southern Energy notes B2

Moody's Investors Service said it assigned a first-time B2 corporate family rating to Southern Energy Holdings Group Ltd.

The agency also said it assigned a B2 senior unsecured rating to Southern Energy's proposed dollar-denominated notes.

The outlook is stable.

The proceeds from the proposed notes will be used by Southern Energy to refinance its existing indebtedness and for general corporate purposes, Moody's said.

The ratings reflect an expectation that Southern Energy will complete the bond issuance upon satisfactory terms and conditions, the agency said.

Southern Energy's ratings reflect its high quality anthracite coal reserves, strong margins and operating cash flow generation, Moody's said.

These factors, combined with the company's low cost of production, has translated into strong margins with an adjusted EBITDA margin ranging between 54% and 60% over the last three fiscal years, the agency said.

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