S&P affirms Eletrobras

S&P said it affirmed its BB global scale ratings on Eletrobras-Centrais Eletricas Brasileiras (Eletrobras), including the corporate credit and senior unsecured note ratings.

S&P also affirmed its brA-1+ short-term national scale rating on the company. S&P is maintaining its SACP at b+, while the outlook remains negative.

The ratings on Eletrobras continue to reflect its close relationship with its controlling shareholder, the Federative Republic of Brazil (BB/negative/B), and the latter's incentives, capacity and tools to support the company, S&P said in a news release.

“Nevertheless, we believe that this commitment can weaken in the future, following government's plans to privatize Eletrobras, in what could be a rather complex and lengthy process, considering the political implications and the required legal and regulatory approvals,” S&P said in the release.

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