S&P ups Sabesp, rates debt brAA-

S&P said it raised the national scale corporate credit and issue-level ratings on Companhia de Saneamento Basico do Estado de Sao Paulo – Sabesp to brAA- from brA+.

This rating, along with the BB global scale corporate credit and issue-level ratings, remains on CreditWatch negative.

The agency also raised the company's stand-alone credit profile to bb+ from bb.

Furthermore, S&P assigned a brAA- rating to Sabesp's proposed five-year R$500 million unsecured debentures.

As hydrology conditions kept improving since the end of 2015, S&P said Sabesp's operating performance continued to recover. As a result, the issuer's key financial ratios improved, and pressure from financial covenants has eased. These trends prompted the agency to revise upward the company's stand-alone credit profile.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.