Fitch ups Sabesp national rating to AA(bra)

Fitch Ratings said it affirmed Companhia de Saneamento Basico do Estado de Sao Paulo – Sabesp’s long-term foreign and local currency issuer default ratings at BB and upgraded its national long-term rating to AA(bra) from AA-(bra).

The outlook is stable.

Fitch said the upgrade on the national scale rating reflects its view that Sabesp has strengthened its credit profile within its issuer default rating level of BB, based on the expectation that the company will maintain sound operating cash flow, conservative capital structure, robust liquidity position and manageable debt maturity profile during the next four years.

The agency said it believes the company has sustainably resumed its capacity to generate strong cash flow from operations (CFFO) as hydrological risk reduced, estimates of adequate tariff adjustments and gradual recovery in water and sewage volumes billed going forward.

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