Fitch affirms Energisa

Fitch Ratings said it affirmed Energisa SA's local- and foreign-currency issuer default ratings at BB- and its long-term national rating, R$350 million debentures due in 2011 and R$150 million debentures due in 2014 at A(bra).

The agency also affirmed the BB- local- and foreign-currency issuer default ratings and A(bra) long-term national ratings of Energisa Minas Gerais Distribuidora de Energia SA, Energisa Paraiba Distribuidora de Energia SA and Energisa Sergipe Distribuidora de Energia SA as well as the $250 million notes units due 2013 of Energisa PB and Energisa SE at BB- and Energisa SE's $42 million debentures due in 2015 at A(bra).

The outlook is stable.

The agency said the ratings reflect Energisa's consolidated credit profile characterized by moderate leverage and strong and predictable operating cash flow of its five distribution subsidiaries that operate essentially as regulated natural monopolies and benefit from a diversified and growing client base.

The ratings also incorporate the expectation that Energisa's consolidated leverage will increase through 2010 driven by higher capital expenditures and further effects of tariff revisions and then decrease gradually, Fitch said.

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