On Aug. 15, 2017, we affirmed the foreign and local currency ratings on Brazil at 'BB', removed them from CreditWatch with negative implications, and assigned a negative outlook. On Aug. 16, 2017, we also affirmed and removed the 'BB' global and 'brAA-' national scale ratings on the state of São Paulo from CreditWatch negative. The outlook is now negative. As a result, we're taking the same rating actions on CESP and Sabesp, utilities that the state of Sao Paulo controls. We're also lowering by one notch the national scale ratings on water utility Compesa, which the state of Pernambuco owns. We also removed the national scale ratings on these entities from under criteria observation (UCO). On Aug. 18, 2017, S&P
