(Image: Fernando Frazão/Agência Brasil)
THE Moody’s on Monday rated the rating of Eletrobras (ELET3) for “BA1”, from “BA2” previously, maintaining the company’s perspective in stable, while the Fitch Ratings He revised the negative perspective for stable, reaffirming the rating in BB-.
According to a Moody’s risk classification agency report, the improvement of Rating reflects Eletrobras’ sustainable progress evidence in the strategy of increasing its profitability, in addition to the federal government’s closed agreement to end the vote limit dispute in the company after the company after privatization.
Moody’s pointed out that the company implemented, after privatization in June 2022, a corporate simplification plan, aiming at reducing costs and risk, with decreased billionaire inventory of compulsory loan and the portfolio of specific purpose societies (SPES).
“We hope Eletrobras will maintain prudent liquidity management in the near future, in line with the company’s history last year,” said the risk rating agency, adding that the company must have enough reservations to operate for a period of 24 months without the need to access the debt market.
Fitch stated that the stable perspective reflects the “positive performance of the group and the expectation of increased cash generation due to relaxed energy sales at prices above the expected”.
“This should allow Eletrobras to keep leverage consistent with current IDRs,” said Fitch.
Fitch kept the Eletrobras rating note in “BB-”.
Source: Moneytimes
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