Fitch rates Eletrobras bonds BBB-

Fitch Ratings said it assigned a BBB- foreign-currency rating to Centrais Eletricas Brasileiras SA's proposed 10-year senior unsecured notes issuance of up to $1 billion. Eletrobras' issuer default rating is BBB-.

The outlook is stable.

The proceeds will be used for general corporate purposes, including the company's capex program.

The agency said Eletrobras' ratings reflect its linkage with the Federal Republic of Brazil. It is the largest electricity generation and transmission company in the country, making it strategically important to the country's economy and development.

Eletrobras is embarking on an aggressive growth plan, and Fitch said this expansion program should improve the company's long-term competitive position and reduce commercial risks.

The total debt-to-unadjusted EBITDA ratio was 4.8 times as of March 31.

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