Fitch: Brazilian Power Sector Risk Remains Manageable

RIO DE JANEIRO--()--In Fitch Ratings' view, the implementation of a more realistic tariff to Brazilian end consumers has reduced the liquidity risk for distribution companies in 2015. In addition, a power rationing event is not expected this year due to heavy dispatches of thermal plants and potential energy consumption reduction. This is bolstered by higher energy prices and a challenging macroeconomic scenario.

Also, Fitch believes that the current lower dispatch of hydro plants adds risk to generators dependent on this source. Transmission segment continues to present the lowest risk compared with distribution and generation, which benefits from predictable cash flow generation and high margins.

The full report 'Brazil Electricity Sector - Market Dynamics and Risks' is available at 'www.fitchratings.com' or by clicking on the link below.

Additional information is available on www.fitchratings.com

Brazil Electricity Sector (Market Dynamics and Risks)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=856848

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Contacts

Fitch Ratings
Mauro Storino
Senior Director
+55 21 4503-2625
Fitch Ratings do Brasil Ltda.
Praca XV de Novemro, 20 - Sala 401B
Centro - Rio de Janeiro - RJ - 20010-010
or
Adriane Silva
+55 11 4504-2205
adriane.silva@fitchratings.com
or
Lucas Aristizabal
+1 312 368-3260
lucas.aristizabal@fitchratings.com
or
Media Relations:
Alyssa Castelli, +1 212-908-0540
alyssa.castelli@fitchratings.com

Contacts

Fitch Ratings
Mauro Storino
Senior Director
+55 21 4503-2625
Fitch Ratings do Brasil Ltda.
Praca XV de Novemro, 20 - Sala 401B
Centro - Rio de Janeiro - RJ - 20010-010
or
Adriane Silva
+55 11 4504-2205
adriane.silva@fitchratings.com
or
Lucas Aristizabal
+1 312 368-3260
lucas.aristizabal@fitchratings.com
or
Media Relations:
Alyssa Castelli, +1 212-908-0540
alyssa.castelli@fitchratings.com