Saneago gets rating upgrade

Friday, December 12, 2014

Brazil's Goiás state water utility Saneago improved its leverage in the market with the upgrade by Fitch of the quotas of its special purpose funding vehicle FIDC, the utility said in a release.

The agency upgraded the long-term national rating of FIDC Saneago I (senior quotes) to 'AAA' from 'AA+', Sanageo II (senior) to 'AA+' from 'AA' and Saneago II (mezzanine) to 'AA-' from 'A'.

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Given its firm position in the market, going public is not out of the question, according to CEO Júlio Vaz.

"By increasing our investment capacity and improving our corporate governance, we've been able to leverage ourselves in the market to the point that we've started thinking about the possibility of launching an IPO," Vaz told BNamericas earlier this year.

Fitch feels that Saneago's low investment risk is even better than its own credit risk, investor relations director Robson Borges Salazer said in the release.

This positive evaluation increases the company's potential to raise funding and, in turn, will result in more basic water and sanitation investments for the state, said Salazar.

Saneago serves 225 of Goiás state's 246 municipalities, supplying potable water to some 4.7mn residents and providing sewage collection and treatment services to 2.1mn.