S&P puts Viesgo on positive watch

S&P said it placed Viesgo Holdco SAU’s BBB- local-currency and foreign-currency issuer credit ratings and the BBB- issue ratings on IE2 Holdco SAU's notes on CreditWatch with positive implications.

The placement follows Viesgo launching a consent solicitation to amend the terms of its €500 million of notes, maturing 2023, and €550 million of notes, maturing 2026, to substitute its parent, EDP - Energias de Portugal SA, as the issuer of the notes, the agency said.

“The transfer of debt would signal a lower likelihood of default on the loans given the BBB rating on EDP. This supports ratings upside for the senior unsecured debt. There is no significant structural subordination with the group such that the senior unsecured notes will be rated in line with the issuer credit rating on EDP. EDP's policy is to issue most of its debt at the parent company directly, or via its financial subsidiary EDP Finance BV, and lend the proceeds to its operating companies,” S&P said in a press release.

If the solicitation is successful, the agency said it plans to boost Viesgo’ ratings by a notch.

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