Fitch: Energias de Portugal, Portugal Telecom unaffected

Fitch Ratings said the ratings of Energias de Portugal, SA and Portugal Telecom SGPS SA are unchanged following its downgrade of Portugal's long-term foreign-currency rating to BB+ with a negative outlook.

The agency said that although Energias de Portugal remains part-owned by the state pending the privatization process of up to 21.35% of the Portuguese government's stake, the above companies' ratings do not embed any element of central government support.

The BBB+ long-term issuer default ratings and senior ratings of Energias de Portugal and EDP Finance BV remain on Rating Watch negative. The Rating Watch reflects the effect of a tariff deficit resulting from the Portuguese Energy Services Regulator's proposal to defer the company's collection from the special regime generation in 2012 and deviations in the CMEC compensation mechanism, Fitch said.

The outlook on Portugal Telecom's BBB issuer default rating remains negative. The agency said the negative outlook already reflects the uncertainties facing the company in its home market, in particular the increased likelihood that consumer behavior will be adversely affected.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.