Cemig Gets Investment Grade

Moody’s has upgraded the local currency rating for Cemig and its subsidiaries to Baa3 from Ba2 with a stable outlook. The ratings, says Moody’s, reflect the company’s healthy profitability and strong cash generation, its integrated position as one of the largest utilities in both the distribution and generation businesses in Brazil, and very strong creditworthiness relative to peers. The upgrade comes in tandem with Moody’s upgrade to category 3 from 4 of the level of supportiveness of Brazil’s regulatory environment for regulated electric utilities.