Business Context and Reporting Period
This Form 6-K filing by EDENOR (Empresa Distribuidora y Comercializadora Norte S.A.) covers a relevant event reported on September 6, 2019, regarding the company's credit ratings. The filing was submitted to the SEC for the month of September 2019.
Key Financial Metrics
The filing does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt balances, or liquidity ratios. The document focuses exclusively on a change in credit rating classification.
Material Changes
Moody's Investors Service downgraded EDENOR's credit ratings in line with the lowering of the Argentine sovereign debt rating. The specific changes are:
- National Scale (Debt due 2022): Downgraded from Aa3 to Baa3.
- Global Scale (Debt due 2022): Downgraded from B1 to Caa1.
- Shares Category: Downgraded from 1 to 2.
- Outlook: Assigned a downward perspective.
Guidance, Outlook, and Risks
Management commentary is limited to the notification of the rating agency's decision. The primary risk highlighted is the correlation between the company's creditworthiness and the Argentine sovereign debt rating. The downward perspective assigned by Moody's indicates a potential for further negative rating actions in the future.
Investor Verification Checklist
- Verify the current status of Argentine sovereign debt ratings to understand the macroeconomic context of this downgrade.
- Review EDENOR's debt maturity schedule, specifically obligations due in 2022, to assess refinancing risks given the new Caa1 global rating.
- Monitor subsequent filings for any impact on borrowing costs or covenant compliance resulting from the rating change.
- Confirm if the "downward perspective" has been updated or if further downgrades have occurred since September 2019.