S&P cuts six Brazilian issuers to stable

Standard & Poor's said it revised the outlook on six Brazilian infrastructure companies to stable from positive, following worsening global economic conditions, credit market volatility, and the combined effect of these on the Brazilian domestic economy.

At the same time, the agency said it affirmed the ratings on these entities and their respective issues.

"The outlook revision reflects the tighter domestic credit markets, higher interest and funding costs, and substantial currency volatility because of the worsening global economic environment," said S&P credit analyst Milena Zaniboni.

"These developments will reduce the possibility of upgrades on these entities in the medium term."

With most of these companies, the positive outlook reflected expectations that a benign domestic economy would allow them to further strengthen their financial profiles by either improving cash flows or reducing total debt in the next year or so, the agency said.

Affected ratings include: Companhia Energética de São Paulo at global-scale B/stable and national-scale at brBBB-/stable; Centrais Elétricas Matogrossenses SA at global-scale B/stable; CP Cimento e Participações SA at national-scale at brB+/stable; Independência SA at global-scale at B/stable; MRS Logística SA at global-scale at BB/stable and national-scale at brAA-/stable; and PDG Realty SA Empreendimentos e Participações at national-scale at brBBB+/stable.

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