S&P cuts Cemat, Celtins

Standard & Poor's said it downgraded Centrais Eletricas Matogrossenses SA (Cemat) to SD from CCC.

At the same time, the agency said it downgraded Companhia de Energia Eletrica do Estado do Tocantins (Celtins) to CC from CCC.

The agency said it removed both ratings from CreditWatch with negative implications where they were placed on March 1. The outlook on Celtins is negative.

S&P said the downgrade follows Cemat's postponement of the payment of R$448.5 million debt, as part of the request for debt restructuring with all its creditors. Because S&P believes no appropriate compensation with respect to the obligations that were deferred has been provided, the agency said it views the restructuring as tantamount to default.

The agency said the downgrade of Celtins reflects its view that the company won't be compliant with its debt obligations because of still disappointing operating performance, very limited access to additional funding and a weak liquidity position.

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