CPFL keeps receiving highest national credit rating from Big Three credit rating agencies

Moody’s, one of the three major credit rating agencies, has lately affirmed CPFL Group’s Brazilian national long-term rating and its unsecured debentures at “AAA” with a Stable Outlook. The Group consists of CPFL Energia, CPFL Paulista and other main subsidiaries in the sectors of power generation, transmission and distribution, as well as new energy. The affirmation marked the completion of CPFL’s rating review by the Big Three, i.e. Fitch, S&P, and Moody’s. The review outcomes continued to affirm the Group’s rating at “AAA,” the highest level on the Brazilian national scale, marking the fifth consecutive year that the Group obtains the highest credit rating in Brazil since 2017.

Such an achievement captures market expectations on CPFL’s continued outstanding performance, stable operation and sustainable growth. It is also attributable to the support CPFL has gained through SGID from State Grid, and the concerted efforts made by the SGBP/CPFL team and the CPFL management. In the course of rating review, CPFL provided the Big Three access to interview its senior management as part of its active engagement with the agencies, to facilitate their efforts to gain insights to the company’s prospects for the future.

In recent years, the CPFL Group has kept a track record of its overall creditworthiness, sustained growth momentum and steady progress in business performance. It has improved its portfolio of power generation, transmission, and distribution among others. Its acquisition of transmission assets in 2021, which formed the current CPFL-T, has further enabled the company’s business lines to forge a strong synergy.

The Group has been delivering sound performance in credit metrics related to financials, cash flow, and leverage. It has maintained a good balance between growth and shareholder returns by improving its capital structure to maximize shareholder repatriation and secure investment necessary for growth. Its good relations with banks and other financial institutions have consolidated its competitive position of market borrowing. In the meanwhile, CPFL is covered in  cross-default clauses of its parent company, which also enables it to sustain the highest credit rating in Brazil.

CPFL has made multiple efforts to manage its market value and relationship with investors through investor forums, performance presentations, and investor training among others. Such efforts have increased investor engagement, helped investors better understand and identify with CPFL, and further polish the company’s market image.

Going forward, the SGBP/CPFL team will continue working with the CPFL local team, to implement State Grid’s development plan on power grid business plus four pillars and the go-global initiative, take steps to maintain CPFL’s high credit rating, foster quality growth, and improve business performance so as to make greater contribution to the parent company’s international business.