S&P: Sabesp outlook to stable

Standard & Poor's said it revised its outlook on Companhia de Saneamento Basico do Estado de Sao Paulo (Sabesp) to stable from positive.

At the same time, the agency affirmed its BB+ global scale and brAA+ Brazilian national scale corporate credit ratings on the company. The standalone credit profile is bb+.

"The outlook revision reflects our belief that Sabesp's EBITDA will weaken as a result of the measure to manage the severe drought in the region. Levels at Sabesp's main water reservoir, Cantareira, have dropped to 10% as of May 2, 2014, from 27% as of Jan. 10, 2014," S&P credit analyst Julyana Yokota said in a news release.

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