Fitch upgrades Eletropaulo

Fitch Ratings said it upgraded Brazil-based Eletropaulo Metropolitana Eletricidade de Sao Paulo SA's ("Eletropaulo") local- and foreign-currency issuer default ratings and five-year $200 million bonds to BB- from B+ and its national long-term rating , debentures and bank credit facility to A(bra) from BBB+(bra).

The outlook is stable.

The agency said the upgrade reflects Eletropaulo's improving financial profile, strong internal cash flow generation, moderate regulatory risk and favorable economic conditions. Eletropaulo has benefited by its growing free cash flow, which has allowed the company to reduce leverage and improve its financial flexibility. The company's debt profile has also shown improvement due to lower financing costs and the extension of debt maturities.

Total debt to last-12-months adjusted EBITDA was 2.3x at June 30.

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