Moody's confirms CEB ratings

Credit rating agency Moody's has confirmed its Baa1.br Brazilian-scale rating and its Ba3 global local currency rating on 86mn reais of market debentures issued by Brazilian power distributor CEB, Moody's said in a statement Tuesday. The confirmation concludes the Moody's review for possible downgrade. The outlook for the Brasilia-based utility is stable. The ratings reflect Moody's assessment of the credit quality of CEB's owner, the Federal District government, in addition to the successful conclusion of the renegotiation of 355mn reais in payables related to CEB's take-or-pay power purchase contracts with generators Furnas and Itaipu, the statement said. CEB's agreement with power sector holding Eletrobras schedules the payment of these obligations over a twelve-year period, with debt service partially covered by an extraordinary rates increase already granted by federal electricity regulator Aneel. To read Moody's full report on CEB, paste the following link in your browser: http://www.bnamericas.com/rc_search_detail.xsql?id_documento=43206&Tx_idioma=I