Fitch ups Energisa

Fitch Ratings has upgraded Energisa SA's long-term national scale rating and its first R$350 million debentures to A(bra) from A-(bra). The agency also upgraded Companhia Forca e Luz Cataguazes-Leopoldina's long-term national scale rating to A(bra) from A-(bra).

Fitch affirmed Empresa Energetica de Sergipe SA's long-term international rating at BB- and Sociedade Anonima de Eletrificacao da Paraiba's $250 million seven-year joint notes due 2013 at BB-.

The outlook is stable.

The rating actions reflect Energisa's sale of assets for R$292.9 million to pay down debt, Fitch said. The national scale upgrade is based on Energisa Group's expected consolidated financial leverage reduction.

The total adjusted debt-to-EBITDA ratio for the past 12 months ending March was 3.5 times and is expected to go below 3 times by the end of 2007, the agency said.

Grupo Energisa's credit profile is supported by moderate leverage and improved debt profile, Fitch said. The ratings also consider the group's broad, diversified and stable customer base, lack of competition in the electrical power distribution segment and the risks inherent in the sector, the agency said.

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