02.08.2023
CTG Brasil, one of the leaders in clean energy generation in the country, received the AAA.br issuer rating, the maximum risk rating issued by the agency Moody’s Local BR. The ‘triple A’ rating indicates the strength of the company and the low degree of investment risk.
The highest level on Moody’s rating scale also places CTG Brasil among the most respected companies, reflecting the group’s position in the Brazilian energy market as one of the largest generators in the country, concentrating the long remaining terms of its concessions, good predictability of cash flow given the exposure to contracting energy in the Regulated Contracting Environment (“ACR”) and good geographic diversification of its assets.
Moody’s ratings are constantly monitored and reviewed at least once every 12 months.
To base the report, the company analyzed all the assets of CTG Brasil, which has a total operational installed capacity of 8.3 GW. The company has also been expanding its renewable energy portfolio in recent years, through the Arinos solar park, in Minas Gerais, and the Serra da Palmeira wind project, in Paraíba.
Of the assets currently in operation, around 60% of the installed capacity is represented by the subsidiary Rio Paraná Energia S.A. followed by Rio Paranapanema Energia S.A. (28%), Rio Verde Energia S.A. (2%) and Rio Canoas Energia S.A. (1%). all rated AAA.br Stable. The remaining capacity (9%) corresponds to participation in three more hydroelectric plants and 11 wind complexes.
In the 12-month period ended in March of this year, CTG Brasil posted net revenue of R$6.1 billion, adjusted EBITDA of R$4.7 billion and operating cash generation (CFO) of R$2.4 billion .
For Moody’s, the company’s operating margins have been in line with the industry average, while net margins benefit from its low leverage.
