S&P affirms Eletrobras

Standard & Poor's said it affirmed its BB foreign currency and BB+ local currency long-term credit ratings on Centrais Elétricas do Brasil (Eletrobras).

The outlook is stable.

S&P said that the ratings on Eletrobras are linked to the credit quality of the Federative Republic of Brazil, noting that the company is majority owned by the government and it deems that the government has strong incentives to support Eletrobras in case of need, given the company's strategic role in financing Brazil's electric power industry and in managing federal generation, transmission and distribution assets.

The company is also exposed to the evolving regulatory environment in Brazil, which can affect its loan portfolio's credit quality, the performance of its subsidiaries, some of which might require financial support from Eletrobras and the government's strong influence on its strategic planning, the agency noted.

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