Fitch affirms Energisa, rates notes BB-

Fitch Ratings said it affirmed Energisa SA's BB- foreign and local currency issuer default ratings, A(bra) long-term national scale rating, A(bra) long-term national rating on its R$150 million third debentures issuance due in 2014 and stable outlook.

Fitch said it also upgraded its subsidiaries Energisa Paraiba, Energisa Sergipe and Energisa Minas Gerais's issuer default ratings to BB from BB- and long-term national scale ratings to A+(bra) from A(bra), and assigned a BB- rating to Energisa's proposed $200 million of senior perpetual notes.

The proceeds will be used to general corporate purpose.

The rating actions reflect the strengthening of the Brazilian electric power sector and its resilience during the recent global economic crisis, as well as the company's adequate consolidated financial profile characterized by moderate leverage, robust liquidity and a lengthened debt maturity profile, Fitch said.

The ratings also incorporate the group's exposure to foreign exchange movements and hydrological risk, Fitch said.

The net debt-to-EBITDA ratio was 2.6 times for the period ended Sept. 30.

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