S&P upgrades the prospects for Energisa‘s ratings to positive
Ratings agency Standard & Poor´s (S&P) has revised the prospects for Energisas long-term corporate credit ratings from negative to positive. The agency has also affirmed the BB global rating and brAA- Brazil national scale rating assigned to Energisa and the subsidiaries Energisa Paraíba and Energisa Sergipe.
In a press release the ratings agency affirms that the positive prospects reflects S&Ps vision that Energisas credit metrics can improve in the next two or three years, which could lead to a more conservative financial risk profile. This is due to the operational improvements achieved by Energisa Group, especially in the electricity distribution assets the company acquired from Rede Energia in April 2014.
S&P further emphasises that Energisa has recently prepaid R$ 1.2 billion of the debentures issued to finance the acquisition of the assets of Rede Energia using funds secured from the recent sale of generation assets. This sale generated cash of approximately R$ 1.7 billion, which according to the press release exceeded the rating agencys initial expectations, where Energisa has already received R$ 1.5 billion with the remainder coming in the months ahead.