Moody’s Puts Rede on Negative Review

Moody’s has put Brazil’s Rede Energia on review for possible downgrade. The agency says it is concerned about the company’s ability to refinance short-term debt and a capex program in a timely manner given adverse conditions in capital markets. Long term, says Moody’s, it appears that further equity capitalization will be critical, given the group’s increased leverage and higher cost of capital. The ratings placed on review are the B2 global scale and Ba1.br national scale corporate family ratings and the B3 global scale rating on Rede’s $575m perpetuals.