Fitch lowers Cemat

Fitch Ratings said it downgraded Centrais Eletricas Matogrossenses SA (Cemat)'s local- and foreign-currency issuer default ratings to restricted default (RD) from C and long-term national scale rating to RD(bra) from C(bra).

The agency said subsidiary Rede Energia SA has local- and foreign-currency issuer default ratings of C, long-term national scale rating of C(bra), $575 million perpetual notes long-term international rating of C with a recovery rating of RR4 and a C(bra) rating on its R$370 million debenture issuance due in 2015.

Its other subsidiary, Celpa has local- and foreign-currency issuer default ratings of D, long-term national scale rating of D(bra) and a C long-term international rating with recovery rating of RR4 to $250 million senior unsecured notes due in 2016.

The downgrades reflect a view that the debt exchanges of certain of Cemat's financial obligations are distressed-debt exchanges, Fitch said.

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