Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​​

I AGREE
Rating Action:

Moody´s assigns Aa1.br rating to TAESA Debentures; outlook changed to stable

 The document has been translated in other languages

Global Credit Research - 11 Jun 2010

BRL600 million of debt instruments affected

Sao Paulo, June 11, 2010 -- Moody's America Latina Ltda. (Moody's) assigned a Baa3 global scale rating and Aa1.br rating on the Brazilian national scale to the 5-year BRL 600 million senior amortizing unsecured debentures to be issued by Transmissora Aliança de Energia Elétrica S.A. (TAESA). At the same time, Moody's affirmed TAESA´s Baa3 global scale issuer rating and Aa1.br rating on the Brazilian national scale. The rating outlook is changed to stable from negative

Proceeds of the BRL 600 million debentures will be used to pay off the existing BRL 550 million promissory notes due this October. This will result in a much better debt profile and a significant improvement of TAESA´s liquidity position, which is the primary rationale for changing the outlook to stable from negative.

The Baa3 issuer rating reflects TAESA´s strong consolidated credit metrics for the rating category, which are supported by the stable and predictable cash flows that result from its operating subsidiaries` long-term concession contracts for the transmission of electricity. The rating also considers the evolving regulatory framework for transmission companies in Brazil, which is supportive and well developed but also relatively new and not fully tested. The lack of good visibility on the capital expansion program constrains the rating. Specifically, a more ambitious program could be implemented by its new shareholders which might negatively impact leverage and liquidity. The rating already considers the current structural subordination of debt at the holding company level to approximately BRL1.0 billion debt currently outstanding at the level of its operating subsidiaries.

The Aa1.br national scale rating reflects the standing of credit quality relative to domestic peers. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issuances and issuers within a country, enabling market participants to better differentiate relative risks. NSRs in Brazil are designated by the ".br" suffix. NSRs differ from global scale ratings in that they are not globally comparable to the full universe of Moody's rated entities, but only with other rated entities within the same country.

Moody's views the regulatory framework for transmission companies in Brazil as well developed and highly supportive but the track record is limited and some procedures are still untested, such as the indemnification of non-depreciated assets upon the non-renewal or termination of an existing concession. The secure and stable nature of the transmission segment stems from the Permitted Annual Revenues (RAP), which are based on fixed capacity payments throughout the concession period that have provisions for automatic annual adjustments for inflation. Moody's notes, however, that the regulation for the transmission segment is evolving towards an incentive-based model, similar to the regulation currently in place for distribution companies. TAESA operates eight transmission networks under long-term concessions expiring between 2030 and 2038. The company largely benefits from a portfolio consisting of concessions primarily granted prior to 2006 whose tariffs are not subject to periodic reviews. On the other hand, the RAP for these concessions is scheduled to step down 50% starting in 2016.

TAESA has strong credit metrics for the rating category in light of the very attractive features of most of the concessions contracts of its operating subsidiaries. Leverage as measured by the Net Debt to Regulatory Asset Value (RAV) ratio averaged 54.2% from 2007 through 2009, while the interest coverage ratio (ICR) was 2.6x, and Funds From Operations (FFO) to Net Debt was 27% in the same period. These ratios are partly tempered by low Retained Cash Flow (RCF) to capital expenditures ratio of just 0.37% which results from several business acquisitions completed during the last three years, including the BRL 562 million acquisition for ETEO in 2008, as well as the relatively high dividend payout ratio registered during this period.

Cash generation has been further boosted by fiscal incentives for some of its operating subsidiaries which operate in the north and northeastern region of the country. This results in lower income tax and social contribution rates estimated to be around 21% over the next four years returning thereafter to the regular 34% rate. TAESA is also expected to benefit from around BRL 420 million of fiscal gains, which stems from around BRL 1.2 billion of goodwill derived from the incorporation of Transmissora do Atlantico de Energia Eletrica S.A by TAESA.

Under normal circumstances, Moody´s would expect to see gradual and consistent improvement in TAESA´s capital structure given its very stable and predictable cash flow, a high dividend pay-out ratio of over 80% and capital expenditures restricted to maintenance capital expenditures only. Moody´s believes that the lack of clarity with regard to expansion capital expenditures, new concessions or possible acquisitions represent potential changes to the above-outlined scenario. The stable outlook, however, envisages that TAESA will prudently manage its capital structure in a way that finances capital expenditures dividends in a manner that keeps the company's credit metrics compatible with the Baa3 rating category. Also incorporated into this view is our expectation that TAESA will maintain an adequate debt maturity profile and a solid liquidity position.

While the company's stable rating outlook factors in continued execution of its business plan, the potential merger of TAESA with its operating companies, as recently approved by the Brazilian electricity regulator ANEEL, coupled with a clear understanding of the company's strategic objectives, including its capital investment plans, could lead to a positive rating action.

Following the guidelines of the Brazilian securities exchange (CVM), TAESA is expected to publish its 2010 full-year financial statements in accordance with the accounting procedures of the international financial reporting system (IFRS). Of the new accounting procedures to be adopted to conform to IFRS general guidelines, Moody´s understands that the recognition of revenues based on the concept of revenue equalization will have the most impact on the company´s financial statements. Apart from the impact of other accounting procedures to be implemented, Moody´s forecasts a reduction of revenues from 2010 through 2018 because of this change, which will result in lower net profit and dividends. However, Moody's expects internal cash generation to remain relatively unchanged during this period as the company keeps collecting all accounts receivables regardless of the accounting procedure. It is still unclear whether an adjustment in the previously reported financial statements will be required. Such an adjustment would most likely be accounted as a reduction in net worth which obviously would have a negative impact on the company's capitalization ratio.

The last rating action for TAESA was on November 04, 2009, when Moody's assigned a BR-1 rating to 360-day BRL 550 million promissory notes. At the same time, Moody's assigned a Baa3 global scale issuer rating and Aa1.br issuer rating on the Brazilian national scale to TAESA. The outlook for all ratings was negative.

The principal methodology used in rating TAESA was Regulated Electric and Gas Networks Rating Methodology (August 2009), which can be found at www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website.

TAESA is a holding company that operates 3,712 km high voltage transmission lines through five subsidiaries: Transmissora Sudeste Nordeste -- TSN, Novatrans Energia, Empresa de Transmissão Alto Uruguai - ETAU, Empresa de Transmissão de Energia do Oeste -- ETEO and Brasnorte. These operating companies operate through long-term concessions granted and regulated by ANEEL. In the last twelve months ended March 31, 2010, TAESA posted consolidated net sales of BRL720 million (USD383 million) and net profit of BRL295 million (USD157 million) as reported at CVM.

Sao Paulo
Jose Soares
Vice President - Senior Analyst
Infrastructure Finance Group
Moody's America Latina Ltda.
55-11-3043-7300

New York
William L. Hess
Managing Director
Infrastructure Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody´s assigns Aa1.br rating to TAESA Debentures; outlook changed to stable
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.