Centrais Eletricas Matogrossenses S.A. May 10

Standard & Poors, May 2010

Abstract
High refinancing risk due to the aggressive short-term debt profile and its limited financial flexibility; Risks related to a potential higher leverage and weakening liquidity in light of cash needs coming from other companies within Rede Group, including the parent company; Weak cash-flow protection measures; and An aggressive capital spending program, required by its concession area. Exclusive right to distribute electricity in the State of Mato Grosso, Favorable demand prospects in its concession area, averaging 5.8% growth in the past five years; and A customer profile largely based on residential and commercial segments. The rating on Brazilian electricity distributor Centrais El-tricas Matogrossenses S.A. (Cemat) reflects a 'weak' business risk profile and 'highly-leveraged' financial risk profile. Cemat reports weak operating statistics,...

Companies mentioned in this report are: Centrais Eletricas Matogrossenses S.A.,Centrais Eletricas do Para S.A.,Companhia de Energia Eletrica do Estado do Tocantins
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

Centrais Eletricas Matogrossenses S.A.,Centrais Eletricas do Para S.A.,Companhia de Energia Eletrica do Estado do Tocantins

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