The agencies Fitch Ratings, Standard & Poor’s and Moody’s have reaffirmed the credit ratings of Energisa S/A, which reflect the Company’s greater overall capacity to honor its financial obligations.
Fitch believes that the acquisitions on August 30, 2018 of Centrais Elétricas de Rondônia S/A (“Ceron”) and Companhia de Eletricidade do Acre (“Eletroacre”) do not change Energisa Group’s consolidated credit profile. The agency believes the group has a positive track record to improve the performance of energy distribution companies, and should also rely on synergy gains and an extraordinary rate reviews in the concessions.
Standard & Poor’s (“S&P”) also stated Energisa’s ratings and outlook have not been affected by the acquisitions. S&P believes the company will benefit from expanding its footprint in Brazil, especially in the North of the country, as the states of Rondônia and Acre are adjacent to Mato Grosso, where the group’s distribution company Energisa Mato Grosso operates, which will enable economies of scale and synergies. The agency also expects Energisa Group will be able to improve the operational and financial performance of Ceron and Eletroacre in the years ahead, given its positive track record in restructuring distribution companies.
Moody’s believes that Energisa has the reserves to meet the capital requirements and initial investments in the new concessions, given its healthy cash position of some R$ 3 billion. The agency stated that although the transaction negatively affects cash flow in the short-term, a swift improvement in the operational performance of the acquired distribution companies could potentially restore Energisa’s finances to pre-acquisition levels by 2021. Moody’s also emphasizes that Energisa has a lengthy history in the energy distribution business and an experienced management team that has already turned around the financial and operational performance of current investees.
See below the current ratings issued by the agencies Standard & Poor’s, Fitch Ratings and Moody’s:
|Standard & Poor’s||brAAA (stable)||BB- (stable)||Sep / 18|
|Fitch Ratings||AA+ (bra) (stable)||BB+ (stable)||Sep / 18|
|Moody’s||Aa2.br (stable)||Ba2 (stable)||Sep / 18|