News Column

Fitch Publishes Brazilian Water/wastewater Dashboard

August 20, 2014



RIO DE JANEIRO--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: Brazilian Water/Wastewater Dashboard - 2H14

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=753543

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'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Gustavo Mueller

Associate Director

+55-21-4503-2632

Fitch Ratings Brasil Ltda

Praca XV de Novembro, 20 - 401B, Rio de Janeiro, RJ CEP 20010-010

or

Mauro Storino

Senior Director

+55-21-4503-2625

or

Media Relations:

Elizabeth Fogerty, New York, +1 212-908-0526

Email: elizabeth.fogerty@fitchratings.com

Source: Fitch Ratings


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