S&P keeps Eletropaulo on watch

Standard & Poor's said its ratings on Eletropaulo Metropolitana Eletricidade de Sao Paulo SA (Eletropaulo) remain on CreditWatch with negative implications.

The company has petitioned the debenture holders for a waiver or for more flexibility regarding certain financial covenants affecting about 79% of Eletropaulo's financial debt.

Given lower profitability in 2012, plus high regulatory liabilities from the postponement of the third tariff review cycle until July 2012, Eletropaulo is expected to breach the required targets for debt and interest coverage. Net debt to EBITDA was 4.9x and EBITDA to interest expenses was 2.0x in 2012, compared with required thresholds of 3.5x and 1.75x, respectively.

© 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.