Summary: Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A. Sep 06

Standard & Poors, September 2006

Abstract
The rating assigned to Brazilian electric utility Eletropaulo Metropolitana Eletricidade de São Paulo S.A. (Eletropaulo) and its US$200 million senior unsecured and unsubordinated euro bonds is 'B+'. The outlook is stable. The rating reflects Eletropaulo's significant short-term debt (including pension funds obligation) together with a shortened debt amortization profile; a still-leveraged capital structure (total debt to total capitalization of 70% in June 2006); and exposure to the Brazilian regulatory framework for the electric sector. On the other hand, Eletropaulo's cash flow protection measures improved and the company demonstrated that it is back in the domestic and international credit markets, in addition to presenting minimal exposure to foreign-currency-denominated debt and having a pretty favorable customer mix. Eletropaulo's operating results continue to...

Companies mentioned in this report are:
- Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.
- The AES Corp.
- Banco Nacional de Desenvolvimento Economico e Social

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.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

- Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.
- The AES Corp.
- Banco Nacional de Desenvolvimento Economico e Social

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