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TEXT-Fitch cuts Centrais Eletricas Matogrossenses S.A.
May 30, 2012 / 9:48 PM / 6 years ago

TEXT-Fitch cuts Centrais Eletricas Matogrossenses S.A.

(The following statement was released by the rating agency)	
    May 30 -Fitch Ratings has taken the following rating actions on Centrais
Eletricas Matogrossenses S.A. (Cemat), a subsidiary of Rede Energia 	
S.A. (Rede Energia):	
--Local and foreign currency Issuer Default Ratings (IDRs) downgraded to 	
Restricted Default ('RD') from 'C';	
--Long-term national scale rating downgraded to 'RD(bra)' from 'C(bra)'. 	
Fitch also rates Rede Energia and its subsidiary Centrais Eletricas do Para S.A.	
(Celpa) as follows:	
Rede Energia	
--Local and foreign currency IDRs 'C';	
--Long-term national scale rating 'C(bra)';	
--USD575 million perpetual notes long-term international rating 'C/RR4';	
--BRL370 million debenture issuance due in 2015 'C(bra)'.	
--Local and foreign currency IDRs 'D';	
--Long-term national scale rating 'D(bra)';	
--USD250 million senior unsecured notes due in 2016 long-term international 	
rating 'C/RR4'.	
The rating actions reflect Fitch's view that the debt exchange of certain of 	
Cemat's financial obligations, including its 2nd and 4th local debentures 	
issuances, are distressed debt exchanges under Fitch's 'Distressed Debt Exchange	
Criteria', published Aug. 12, 2011.	
Although the investors agreed with the new conditions of these issuances, Fitch 	
understands that they resulted in a significant change in the original 	
contractual terms, aiming at avoiding an event of default.	
 (Caryn Trokie, New York Ratings Unit)

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