... Eletricidade de Spo Paulo S.A.'s ratings reflect moderate leverage, robust liquidity and lengthened debt maturities. Fitch Ratings believes the negative pressures in energy consumption, delinquency and energy losses due to the challenging Brazilian macroeconomic environment will have limited effects on the company's credit profile in future years. The ratings incorporate a moderate regulatory and hydrological risk for the Brazilian power sector. Moderate Leverage to Remain: Fitch expects net leverage will remain at moderate levels in the range of 2.5x¡3.5x for the next three years. For the LTM ended June 30, 2016, total debt/EBITDA was 4.1x, while net debt/EBITDA was 2.6x, compared with 3.8x and 3.2x, respectively, for 2015. Fitch's calculations do not incorporate BRL1.3 billion of debt related to pension fund obligations, which are included in company financial covenants, excluding pension fund expenses from EBITDA. Positive Cash Flow:...
