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Instituto Costarricense de Electricidad (ICE) and its senior unsecured debt were upgraded by a notch to Ba2 from Ba3 by Moody’s. The upgrade follows Costa Rica’s sovereign upgrade to Ba3 last month. ICE’s is rated one-notch above Costa Rica’s sovereign rating, reflecting a fundamentally strong credit profile. This is supported by ICE’s role as a major autonomous utility in the country, benefiting from rising energy demand and a diversified revenue stream from its telecom sector. The company has been consistently reducing its debt since 2018 and has a well-structured debt amortization profile. Despite plans to increase investments to meet growing demand, ICE’s leverage metrics are expected to remain solid over the next three years, with CFO pre-working capital-to-debt and interest coverage ratios projected to stay above 15% and 2.8x, respectively, as per Moody’s.
Its dollar bonds traded stable with the 6.75% 2031s at 104.1, yielding 6%