Fitch Ratings has reaffirmed Companhia Energética de Minas Gerais (Cemig) and its subsidiaries’ global rating at BB.
This rating places Cemig just two steps away from investment grade status.Simultaneously, Fitch upgraded Cemig’s long-term national rating to AAA, the highest possible score on their scale.
The outlook for these long-term ratings remains stable.Cemig’s solid performance stems from its diverse asset portfolio and strong operational results.
The company has shown robust cash generation within Brazil’s electric sector.This upgrade reflects Cemig’s strengthened consolidated credit profile, which has improved significantly in recent times.
The distribution segment of Cemig’s business has seen a notable increase in EBITDA.Cemig Achieves Top-Tier Credit Rating: A Milestone in Brazil’s Energy Sector – Cemig Headquarters.
(Photo Internet reproduction)Additionally, the company has sold some assets to boost its liquidity.
These moves prepare Cemig for the repayment of eurobonds due in December 2024.
The improved financial position also supports Cemig’s ambitious investment program.Cemig’s leverage ratios are currently low but are expected to peak in 2027.
Despite this, Fitch believes the company will maintain access to funding.
This access will support both investment needs and refinancing efforts in the coming years.The energy giant’s financial health has been bolstered by strategic decisions.
These include optimizing operations and divesting non-core assets.
Such moves have strengthened Cemig’s market position and financial flexibility.Cemig Achieves Top-Tier Credit Rating: A Milestone in Brazil’s Energy SectorCemig’s success story showcases the potential for growth in Brazil’s energy sector.
It demonstrates how sound financial management can lead to improved credit ratings.
This achievement may inspire other companies in the industry to follow suit.The upgrade to AAA status on the national scale is a significant milestone for Cemig.
It reflects the company’s strong position in the Brazilian market.
This top-tier rating may open doors to better financing options and investor confidence.As Cemig continues to evolve, it faces both opportunities and challenges.
The company must balance its investment plans with maintaining financial stability.Its success in navigating these waters will be crucial for sustaining its newly achieved top-tier credit rating.
Music
Trailers
DailyVideos
India
Pakistan
Afghanistan
Bangladesh
Srilanka
Nepal
Thailand
StockMarket
Business
Technology
Startup
Trending Videos
Coupons
Football
Search
Download App in Playstore
Download App
Best Collections