Energisa : Fitch upgrades Energisa‘s ratings and highlights favorable scenario for the company
August 24, 2015 at 01:11 pm EDT
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Fitch upgrades Energisa's ratings and highlights favorable scenario for the company
08/21/2015
Risk rating agency Fitch has upgraded Energisa's ratings to 'A+(bra)', from A(bra)', and those of its subsidiaries to 'AA-(bra)', from 'A+(bra), which reflects the company's ability to revert the negative impact of the acquisition of Grupo Rede in April 2014 on its consolidated credit profile. The agency outlined a positive scenario for Energisa in its report "Fitch 25 Brasil", disclosed this week containing a comprehensive revision of the credit profile of the 25 largest debentures issuers in Brazil rated by the agency.
In its report Fitch highlights Energisa's "stronger than expected credit profile". The agency considers the sale of its operational and under construction generation assets this year for BRL 2.8 billion as positive, since it reduces pressure on the group's liquidity and leverage ratios on a more restricted credit scenario.
The share and debenture initiatives scheduled for 2015 were also cited in the report as initiatives which will "benefit the group's credit metrics". The report says the shares will enhance Energisa's liquidity position.
The rating action incorporates Fitch's expectation that Energisa will succeed in continuing improving the operational performance of the subsidiaries acquired from Grupo Rede. The new distribution companies' location is a further positive factor mentioned in the document. The concession operators acquired are located in areas of high energy consumption historical growth.
Energisa's positive results take place in a context of high exposure to the electric sector, which embraces nearly one third of the companies in Fitch's list. The agency emphasizes that the operational environment in this sector has been more uncertain due to low rainfall levels, high energy prices and the potential impact of lower energy consumption in Brazil due to the contraction in gross domestic product (GDP) of 1.5% in 2015.
Energisa SA is a Brazil-based holding company involved in the energy sector. Through its subsidiaries, the Company is mainly engaged in the distribution and marketing of electric energy. It distributes energy for residential, industrial, commercial and rural consumption. The Company operates in the states of Rio de Janeiro, Sao Paulo, Parana, Minas Gerais, Sergipe, Paraiba, Mato Grosso, Mato Grosso do Sul, Tocantins, Rondonia and Acre. In addition to entities engaged in the electric energy distribution, the Company's subsidiaries include Energisa Solucoes SA, which provides services related to generation and distribution of electric power; Energisa Servicos Aereos SA, which provides thermographic inspection services; and Energisa Planejamento e Corretagem Seguros Ltda, involved in the insurance brokerage, among others.
ENERGISA S.A. 
