In our view, the ratings on Brazil and the state of São Paulo cap the ratings on domestic power generation company CESP. We're affirming our 'BB' global scale and 'brAA-' Brazilian national ratings on CESP. At the same time, the company's stand-alone credit profile (SACP) remains unchanged at 'bbb-', and we still view that there's a low likelihood of extraordinary government support from the state of São Paulo (BB/Negative/--; brAA-/Negative/--), the company's owner. The negative outlook on CESP mirrors that on the sovereign and on the state. On June 15, 2016, S&P Global Ratings affirmed its 'BB' global scale and 'brAA-' national scale ratings on CESP-Companhia Energetica de Sao Paulo (CESP). The outlook on the corporate credit ratings remains negative.
