S&P affirms Energisa, subsidiaries

S&P said it affirmed its BB- global scale and brAAA Brazil national scale corporate credit ratings on Energisa SA and on its subsidiaries Energisa Paraiba-Distribuidora de Energia SA and Energisa Sergipe-Distribuidora de Energia SA.

The outlook is stable.

Energisa's bb+ stand-alone credit profile is unchanged and reflects a view that Energisa's cash flow generation will gradually improve in the next few quarters, especially as a result of the favorable rate readjustments for its distribution companies, S&P said.

This stems from the high level of investments the group made throughout its concession areas in order to improve the overall operating efficiency, the agency said.

S&P said it expects Energisa to post a debt to EBITDA below 2.5x and funds from operations to debt above 25% over the next few years.

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