S&P lowers Interconexión Eléctrica

Standard & Poor's said it lowered the local currency corporate credit rating on Interconexión Eléctrica SA ESP to BBB- from BBB and removed it from CreditWatch with negative implications, where it was placed on June 20, following the company's acquisition of a 50.1% controlling stake in Companhia de Transmissão de Energia Paulista.

The outlook is stable.

At the same time, S&P said it affirmed the BB foreign currency long-term corporate credit rating on the company.

The agency noted that the local currency rating downgrade reflects an aggressive financial policy evidenced by continued debt-funded acquisitions, adding that the rating action takes into consideration ISA's expected deleveraging of its capital structure through a stock issue in 2007, as well as the expected associated improvement in the company's financial measures.

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