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Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. Jun 11 Product Image

Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. Jun 11

  • ID: 1820378
  • June 2011
  • Standard & Poors

Abstract
Sound cash flow protection measures; Exclusive concession in the São Paulo metropolitan area, and Favorable customer base. Aggressive dividend distribution; Some regulatory uncertainty regarding its third-cycle tariff reset; and Efficiency indicators somewhat below peers. The ratings on Brazil-based electric power distribution company Eletropaulo Metropolitana Eletricidade de São Paulo S.A. (Eletropaulo) reflect its satisfactory business profile and significant financial profile. The company's aggressive dividend distribution and some uncertainty about the third-cycle tariff reset that regulator Agência Nacional de Energia Elétrica (Aneel) will decide are relevant risks. Partly mitigating those risks are the company's consistently strong cash flow generation and liquidity--even with a high level of dividends distribution--and active liability management that result in a comfortable debt amortization schedule. The company's satisfactory...

Companies mentioned in this report are:
- Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.
- Companhia Brasiliana de Energia

Action: Review

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: Full Analysis

Note: Product cover images may vary from those shown

- Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.
- Companhia Brasiliana de Energia

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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