The Brazilian Defense Sector - Market Opportunity and Entry Strategy, Analyses and Forecasts to 2015
- Published: June 2010
- Region: Brazil
Sound cash flow protection measures; Exclusive concession in the S-o 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 S-o 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 Ag-ncia Nacional de Energia El-trica (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
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Research Type: Full Analysis
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Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.,Companhia Brasiliana de Energia