S&P upgrades Eletrobras, puts four Brazilian companies on positive watch

Standard & Poor's said it raised the foreign and local currency ratings on Eletrobras-Centrais Eletricas Brasileiras SA to BB from BB- and BB+ from BB, respectively, and placed the ratings of four other Brazilian corporations on CreditWatch with positive implications following the upgrade of Brazil's foreign currency sovereign credit to BB from BB- and its local currency rating to BB+ from BB.

The other corporations on CreditWatch are Companhia Vale do Rio Doce (BBB), Tele Norte Leste Participações SA (BB) Telemar Norte Leste SA (BB) and Usinas Siderúrgicas de Minas Gerais SA (BB).

S&P said the actions reflect upward rating potential as a result of its lower perception of country risk associated with the economic and working environment in which these entities operate. The agency will resolve the CreditWatch listings within the next few weeks following a detailed analysis of how the improved macroeconomic and financial environment affects these companies' credit quality.

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