TEXT-Fitch release on ISA Capital do Brasil SA

(The following statement was released by the ratings agency)

April 3 - Fitch has affirmed ISA Capital do Brasil SA's (ISA Capital)
foreign and local currency Issuer Default Ratings (IDRs) at 'BB'. The rating
action applies to US$554 million in senior secured notes outstanding. The
Rating Outlook is Stable.

ISA Capital do Brasil's ratings are based on the strong credit quality of
Companhia de Transmissao de Energia Eletrica Paulista (TRPL4.SA: Quote, Profile, Research) (CTEEP), its
sole revenue source and only operating asset. CTEEP's strong credit quality is
attributable to the company's monopoly position, its stable and predictable
operating cash flow and its financially sound credit profile. The ratings also
reflect the noteholders' structural subordination to CTEEP's obligations, as
well as the company's concession renewal and refinancing risks.

Although, CTEEP's credit quality is strong, ISA Capital's credit quality is
somewhat weaker given that ISA only owns 37.5% of CTEEP total capital and does
not receive the full benefits of operating cash flow. ISA Capital's debt
service coverage ratios approximately 2.8x as of year end 2007. The company
received dividends of approximately BRL284 million and had interest expenses of
BRL105 million during 2007.Going forward, ISA Capital is expected to increase
its cash reserves by approximately BRL100 million per year during the next four
years in order to cover the amortization of the 2012 notes.

CTEEP's monopoly position stems from its exclusive right to provide
electricity transmission services through its three concessions expiring in
2015, 2031 and 2038, respectively. Furthermore, two CTEEP's concession are
located in the state of Sao Paulo, which accounts for one-third of Brazil's
overall GDP, making it one of the largest electricity consumers in the country,
and the third one, which will still be constructed, is in the Northeast of
Brazil. CTEEP's strong market position should further benefit the company when
it participates in future bids for new transmission lines in Brazil.

CTEEP generates a stable and predictable cash flow, exhibiting the low
business risk profile of an electric transmission utility company. CTEEP's
tariff-setting mechanism is straightforward, receiving minor intervention from
its regulator. The company's tariffs are fixed and 86.4% of its permitted
annual revenue will not be revised by the regulator until 2015, being adjusted
by inflation every July. The other 13.6% are revised by the regulator every
four years and automatically adjusted by inflation every year. CTEEP's revenue
is stable and exempt from volumetric risk. The permitted annual revenue, which
represented approximately 99% of the company's total revenue in 2007, is based
on the electricity transmission assets available to users, instead of the
transmitted electricity volume.

CTEEP's credit metrics are supportive of its holding company's credit
ratings. The operating asset credit metrics are characterized by low leverage
and strong interest coverage. Since ISA's acquisition, CTEEP's EBITDA margin
has improved, as expected, to approximately 86% in 2007 fiscal year from the
pre-acquisition 54% in the first half of 2006. CTEEP's current EBITDA margin is
more in line with its peers. Healthy operating cash flow has allowed the
company to finance its growth with internally generated cash and thus maintain
low leverage levels.

ISA Capital's ratings also reflect the strong covenant package that, among
other things, limits CTEEP's future level of indebtedness. CTEEP's expected
leverage and interest coverage should be well within the limits imposed by the
covenants, which require leverage of no more than 3.0x and interest coverage of
at least 3.0x. In addition, under the covenant package, ISA Capital is not
allowed to declare or pay any dividends or make any distributions.

ISA Capital is a holding company created to participate in the
privatization of CTEEP. The company was incorporated with a USD378 million
equity contribution by Interconexion Electrica S.A. E.S.P. (ISA) and a US$609
million intercompany loan from ISA. CTEEP, ISA Capital's sole source of revenue
and only operating asset, is an electricity transmission company located in the
state of Sao Paulo. It is the largest company of its type in Sao Paulo and the
largest privately owned transmission company in the country. The company holds
three concessions for the transmission of electricity in the state of Sao
Paulo, the first one expiring in 2015 and the second one in 2031. The third
concession contract, expiring in 2038, was signed on March 17,2008, which
comprises the construction, operating and maintenance of two transmission lines
in the Northeast of Brazil, that CTEEP won at November 2007's auction. CTEEP's
bulk revenue is generated by the contract that expires in 2015 and can be
renewed for an additional 20 years at the regulator's discretion.
(New York Ratings Team)