S&P rates Eletropaulo notes B

Standard & Poor's said it assigned its B rating to the forthcoming $200 million five-year Brazilian real-linked unsecured and unsubordinated bonds to be issued by Eletropaulo Metropolitana Eletricidade de Sao Paulo SA.

At the same time, S&P said it affirmed the global scale local and foreign currency B corporate credit ratings.

The outlook is stable.

The ratings reflect concerns that include still leveraged capital structure, significant volume of past due accounts receivable related to state government and municipalities and regulatory framework that is still evolving, the agency said.

Strengths that mitigate the concerns include lower exposure to currency mismatches because of only 15% of total debt denominated in foreign currency as of March, financial flexibility and credit access that show improvement and a favorable customer mix base, S&P added.

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