Moody's raises Colombia's EEB outlook

Friday, August 22, 2014

Moody's Investors Service raised Colombian power holding EEB's outlook to positive from stable, and ratified the company's credit rating at 'Baa3' investment grade.

"Such improvement reflects the fulfillment of expectations regarding a disciplined execution of its current 2013-17 investment plan, valued in US$ 7.5bn, and it also anticipates a prudent financing of its future growth investments," Moody's said in a report.

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The ratings agency positively noted EEB's "adequate" capital structure, resources through partnerships, permanent dividends from non-consolidated companies and moderate indebtedness.

An EEB ratings upgrade could occur depending on the successful execution of certain projects currently being developed by non-consolidated affiliates and controlled subsidiaries, Moody's added.

Successful loan refinancing connected to EEB's acquisition of Colombian natural gas transporter TGI would also be a factor, the ratings agency said.