...Peer Comparison Eletropaulo's Issuer Default Rating (IDR) of `BB' compares favorably to Companhia Energetica de Minas Gerais' (CEMIG; B¡/Rating Watch Negative [RWN]) rating, as CEMIG has higher leverage and significant refinancing needs until YE18. Eletropaulo is equal in ratings to Energisa S.A. (BB/Stable), due to the structural debt subordination of Energisa as a holding company. Energisa's consolidated distribution subsidiaries are rated `BB+' and benefit from a more diversified asset base and improvement in operational results after the acquisition of Group Rede distribution companies. Emgesa S.A. E.S.P. (BBB/Stable) located in Colombia and AES Gener S.A. (BBB¡/RWN) located in Chile, both operate in the electric generation segment and benefit from better operating environments as revenue generation and asset location are in investment-grade countries. AES Gener has an aggressive expansion program with some execution risk explaining the RWN. Parent/Subsidiary Linkage No Parent/Subsidiary...
