Research Update: CESP-Companhia Energetica de Sao Paulo 'BB-' Global And 'brAAA' National Scale Ratings Affirmed; Outlook Stable

We expect Brazil-based hydropower generator CESP-Companhia Energetica de Sao Paulo to post still comfortable although more leveraged credit metrics in the next two years, with adjusted debt to EBITDA below 2x and funds from operations to debt above 40% because in spite of additional debt raised operating performance should benefit from initiatives to control costs and improve power contracts' allocation strategy. On July 5, 2019, S&P Global Ratings affirmed its 'BB-' global scale and 'brAAA' national scale ratings on CESP. The 'bbb-' stand-alone credit profile (SACP) is unchanged. The stable outlook on CESP reflects that on Brazil, given that our ratings on CESP are limited to those on the sovereign. The 'bbb-' SACP reflects our view that leverage metrics will

...+ We expect Brazil-based hydropower generator CESP-Companhia Energetica de Sao Paulo to post still comfortable although more leveraged credit metrics in the next two years, with adjusted debt to EBITDA below 2x and funds from operations to debt above 40% because in spite of additional debt raised operating performance should benefit from initiatives to control costs and improve power contracts' allocation strategy. + On July 5, 2019, S&P Global Ratings affirmed its '##-' global scale and 'brAAA' national scale ratings on CESP. The '###-' stand-alone credit profile (SACP) is unchanged. + The stable outlook on CESP reflects that on Brazil, given that our ratings on CESP are limited to those on the sovereign....

Research Update