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Fitch upgrades Energisa’s rating

On April 3, 2018 the risk rating agency Fitch Ratings upgraded the Energisa's Long-term National Scale Rating to “AA(bra)” from “AA-(bra)”, with a stable outlook. Fitch has also affirmed Energisa's IDRs at 'BB' and upgraded its local currency IDR to BB+. Fitch has also affirmed Energisa's subsidiaries local and foreign currency IDRs at 'BB+' and their long-term national scale ratings at 'AA+(bra)'. The rating outlook is stable.

The new rating reflects Fitch's expectation that its leverage will improve due to a more robust flow of dividends coming from its operating subsidiaries, the guarantees provided by the company, the low to moderate business risk for the Brazilian power distribution segment, which is mitigated by the group's diversification through nine different concessions in the country. The analysis also considers that Energisa Group will consistently improve its operating cash generation and should remain with a robust liquidity profile.

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