Fitch rates Energisa notes A(bra)

Fitch Ratings said it assigned a long-term national scale rating of A(bra) to Energisa SA's R$150 million six-year third issuance of debentures. The company's local- and foreign-currency issuer default ratings are BB- and its long-term national scale rating is A(bra).

The outlook is stable.

Proceeds will be used to prepay Energisa's first issuance of commercial paper.

The rating is supported by the consolidated credit profile of Group Energisa, with moderate leverage and an adequate debt profile, the agency said.

Group Energisa's major challenge for 2008 and 2009 should be the tariff review process for all of its distribution companies, Fitch said.

As of year-end 2007, the issuer's total adjusted debt-to-EBITDA ratio fell to 3.1 times, from 3.8 times in 2006.

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