...Robust Operational Cash Generation: Engie Brasil Energia S.A.'s ratings reflect Fitch Ratings' expectation the company will be able to sustain a solid consolidated credit profile in the future even in a scenario of slower recovery in energy consumption. Engie Brasil benefits from a strong financial profile with low leverage, a robust liquidity position and a lengthened debt maturity schedule. Fitch expects the company's EBITDA margin will recover to 50%¡55% after 2018 due to a reduced thermal dispatch and fewer effects from hydrology. FCF to Turn Negative: Fitch forecasts negative FCF of around BRL2 billion for Engie Brasil during 2017¡2018 and believes it is manageable. The negative FCF is a result of capex of BRL5.5 billion during 2017¡2018. Nevertheless, Fitch considers the flexibility the company demonstrated in reducing dividend distributions, as a way to preserve cash and credit metrics when necessary, as a positive sign. Solid Credit Metrics to Remain: The ratings already incorporate...
