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Bulletin: Iberdrola Ratings And Outlook Unchanged By Announced Acquisition Of Elektro Eletricidade e Servicos Jan 11
Standard & Poors, Jan 2011
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
Abstract
LONDON (Standard & Poor's) Jan. 20, 2011--Standard & Poor's Ratings Services said today that the acquisition by Spain-based utility Iberdrola S.A. (A-/Negative/A-2) of Brazil-based electricity distribution company Elektro Eletricidade e Servicos S.A. (Elektro; not rated), does not have an immediate effect on the ratings or outlook on Iberdrola or its subsidiaries. The transaction value is $2.4 billion (while Elektro's enterprise value is $2.8 billion). We understand that Iberdrola will finance the acquisition primarily with proceeds from its tariff deficit securitizations (the first tranche was executed on Jan. 11, 2011) and with either additional debt, divestments, or operating cash flow. We do not think that the acquisition will change Iberdrola's business risk profile materially. However, we view the acquisition as favorable...
Companies mentioned in this report are: Iberdrola S.A.
Action: Bulletin
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