Brazil-based hydropower generator CESP should maintain its very low leverage despite lower cash flow generation in the next few years, following less available electricity to sell under contracts and weaker hydrological conditions. We're keeping our 'BB' global scale and 'brAA-' national scale ratings, both capped at the rating level on the state of Sao Paulo, on CreditWatch with negative implications. The CreditWatch negative listing on CESP reflects that of the state of Sao Paulo. On June 9, 2017, S&P Global Ratings kept its 'BB' global scale and 'brAA-' Brazil national scale corporate credit ratings on CESP – Companhia Energetica de Sao Paulo (CESP) on CreditWatch with negative implications. The company's 'bbb-' stand-alone credit profile (SACP) remains unchanged. The CreditWatch reflects
