Fitch lowers EDP - Energias, Hidroelectrica

Fitch Ratings said it downgraded EDP - Energias de Portugal, SA's and EDP Finance BV's long-term issuer default ratings, senior unsecured ratings to BBB- from BBB+ and short-term issuer default rating to F3 from F2.

The agency also said it downgraded Hidroelectrica del Cantabrico, SA's long-term issuer default rating to BBB- from BBB+ and its short-term issuer default rating to F3 from F2.

The outlook is negative.

The ratings also were removed from Rating Watch negative.

The downgrades follow a recent review of the company's credit profile, Fitch said.

The ratings are now effectively unconstrained by the ratings of Portugal, the agency said, and the latter would only provide a negative trigger in the event of a further multi-notch sovereign downgrade.

The company's operating environment has deteriorated due to the persisting weak economic fundamentals affecting the Portuguese and Spanish markets, Fitch added.

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