S&P affirms EDP Espirito, EDP Sao Paulo

S&P said it affirmed its BB- global scale and brAAA Brazil national scale ratings on EDP Espirito Santo Distribuicao de Energia SA.

The outlook remains stable.

EDP Espirito Santo's bb+ stand-alone credit profile is unchanged.

At the same, S&P affirmed the brAAA Brazil national scale rating on the sister company, EDP Sao Paulo Distribuicao de Energia SA.

“The rating affirmation on EDP Espirito Santo and EDP Sao Paulo reflects our view that the sovereign rating on the Federative Republic of Brazil (global scale: BB-/stable/B; national scale: brAAA/stable/--) caps the ratings on both companies,” the agency said in a news release.

“We view electricity distributors as having an appreciable likelihood of following Brazil in the hypothetical default scenario, given their regulated nature.”

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