Fitch Ratings has published the new Brazilian Water/wastewater Dashboard.
This publication explores key themes affecting the credit profiles of the operators within the Brazilian water/wastewater industry. Items that are monitored in the report are the strong sector fundamentals supported by the resilient and predictable demand and the importance of high operating efficiency to support strong levels of capex. The expectation is that free cash flow (FCF) of issuers should continue to be pressured by heavy investment levels. Hydrologic risks are manageable within the industry with the exception of Sabesp, which is heavily impacted by the drought and is expected to end 2014 with a weaker credit profile.
Fitch considers the political risks for the industry as moderate. The regulatory model is new and relatively untested, which poses risks. Positively, regulation occurs at the local level rather than the federal level. Overall, concession contracts have been respected. Potential changes in ratings or outlooks should be issuer specific.
A complete review of these topics including a review of the dashboard is available at www.fitchratings.com or by clicking the link above.
Additional information is available at 'www.fitchratings.com'.
Fitch Ratings Brasil Ltda
Praca XV de Novembro, 20 - 401B,
Source: Fitch Ratings
Most Popular Stories
- U.S. Families 'Extraordinarily Vulnerable': Yellen
- Hillary Clinton to Address CHCI Conference
- Larry Ellison Steps Down as Oracle CEO
- Apple Locks Itself Out of Devices
- Alibaba Prices IPO at $68 a Share
- Veterans to Get Training as Solar Panel Installers
- Hispanics Doubt Marco Rubio's Chances
- Wildfires Rage in California
- John Cantlie Delivers ISIS Message to Save Life
- Alibaba: Today China, Tomorrow the World