On May 22, 2017, we placed our global scale long-term foreign currency (FC) rating and our local currency (LC) rating on Brazil on CreditWatch with negative implications. On May 23, 2017, we also placed our long-term FC 'BB' credit rating and our 'brAA-' national scale rating on the state of Sao Paulo on CreditWatch negative, because we don't believe that it can have a rating higher than the one on the sovereign. As a result, we placed the corporate credit and issue ratings on CESP and Sabesp, which are entities controlled by the state of Sao Paulo, on CreditWatch with negative implications. We could lower the ratings on these companies within 90 days if we were to lower the ratings
