S&P rates Sabesp notes brAAA

S&P said it assigned its brAAA Brazil national scale issue-level rating to Companhia de Saneamento Basico do Estado de Sao Paulo's (Sabesp) proposed 27th debentures issuance.

The R$1 billion issuance will comprise three series, with final maturity in 2027, and proceeds will be used for refinancing and strengthening the company's cash position.

“The rating on the proposed issuance is at the same level as the issuer credit rating in the Brazilian national scale because all the debt is issued at the operating level. We note that just 20% of Sabesp's debt is secured, and therefore unsecured creditors are not in material disadvantage to the secured creditors,” S&P said in a press release.

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