Summary: Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. Jun 11
- ID: 1820663
- June 2011
- Standard & Poors
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 business profile reflects the benefits from an exclusive concession to distribute electricity in the São Paulo metropolitan area, sound operating performance, and an adequate and steady level of total electricity losses (10.8% in March...
Companies mentioned in this report are:
- Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.
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