Fitch revises Eletrobras view to negative

Fitch Ratings said it changed the outlook for Centrais Eletricas Brasileiras SA (Eletrobras) to negative from stable and affirmed its long-term foreign- and local-currency issuer default ratings and outstanding senior unsecured bond ratings at BB-.

The agency also affirmed Eletrobras' national scale rating, as well as its rated subsidiaries and their outstanding local debentures ratings at AA(bra).

“The outlook revision to negative reflects the expectation of lower cash generation coming from the sale of uncontracted energy, which should prevent Eletrobras from deleveraging as expected. It also takes into account the increase on the risk of the hydropower plant (UHE) Belo Monte, where Eletrobras guarantees R$14 billion of debt, as well as uncertainties surrounding the new capex plan and the need to address around R$20.4 billion of debt maturing until December 2024,” Fitch said in a statement.

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