S&P boosts Sabesp

Standard & Poor's said it raised its Brazilian national-scale corporate credit rating on Companhia de Saneamento Básico do Estado de São Paulo (Sabesp) to A+(br) from A(br).

At the same time, S&P said it affirmed the company's global-scale ratings at BB-.

The outlook is stable.

The agency noted that the upgrade on the Sabesp national-scale ratings reflects significant improvement in the company's financial risk profile and our expectations that such performance will be sustainable even in light of Sabesp's substantial investment commitment.

S&P added that the ratings on Sabesp are constrained by poorly defined legal and regulatory framework and no definition of the concession ownership in metropolitan areas, which implies no contracts with cities in the São Paulo Metropolitan region.

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