S&P puts Eletropaulo on positive watch

S&P said it placed the BB- global scale and brA+ national scale ratings on Eletropaulo Metropolitana Eletricidade de Sao Paulo SA (Eletropaulo) on CreditWatch with positive implications.

This comes after news that Enel Americas SA has acquired indirect control of the company, S&P explained.

The transaction is subject to conditions that include approval by regulators and lenders, which are expected to take a few months, the agency said.

The CreditWatch listing with positive implications reflects a view of a potential upgrade for Eletropaulo in the next few months depending on whether or not Enel Americas would be willing to provide timely and sufficient support to Eletropaulo, S&P said.

Enel Americas already provides support to its other assets in Brazil, the agency noted.

Eletropaulo may benefit both operationally and financially from being part of a larger group with international operations in the utilities sector, S&P said.

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