Both changes in regulation need to be confirmed by the end of

Portuguese corporate rtgs unaffected

(The following statement was released by the rating agency)

Nov 24 Fitch Ratings says that following its downgrade of Portugal Long term foreign currency rating to Outlook (see Downgrades Portugal to from Outlook Negative its Portuguese corporate ratings are unchanged. Long term Issuer Default Ratings (IDR) and senior unsecured ratings are Watch Negative (RWN). Both entities cheap Canada Goose Short term IDRs of are also on RWN. (HC, wholly owned by EDP) Long term IDR of and its Short term IDR Canada Goose Parka of are on RWN.

Portugal Telecom (PT) canada goose coats on sale IDR is Canada Goose Online The senior unsecured rating of Portugal Telecom Finance International BV bonds are

Although EDP remains part owned by the state, pending the privatisation process Canada Goose online of up to 21.35% of the Portuguese canadian goose jacket government stake, the above companies ratings do not embed any element of central government support. Fitch continues to review the effect upon each issuer of ongoing and related austerity measures, and adverse effects upon the domestic banking systems.

Fitch established in its report Sovereign Pressures and Corporates dated 5 April 2011, that certain corporates can be rated above their respective eurozone sovereign. The degree of stretch from the sovereign buy canada goose jacket rating depends on factors such as the company wholly domestic or international diversification.

Fitch has already stated that a potential one notch sovereign downgrade of Portugal to would Canada Goose Coats On Sale not result in an automatic downgrade of EDP rating to (see Maintains EDP and Hidrocantabrico on RWN dated 14 November 2011). The current RWN reflects the effect of a tariff deficit resulting from the Portuguese Energy Services Regulator proposal to defer EDP collection from the special regime generation in 2012 and deviations in the CMEC compensation mechanism. Both changes in regulation need to be confirmed by the end of December 2011, Canada Goose sale after which Fitch expects to resolve EDP RWN. Using the guidance in the above Fitch report, any potential further canada goose black friday sale downgrade of Portugal sovereign rating would canada goose coats also result in a canada Canada Goose sale goose clearance sale one notch downgrade of EDPs ratings.

EDP had adequate liquidity of over EUR4bn at end Canada Goose Jackets September 2011, including cash and available canada goose clearance bank https://www.canadagoosejackets7v.com facilities. This largely covers the company refinancing needs in the next 18 months but the company will have to tap the market to cover 2013 debt maturities.

Portugal Telecom Negative Outlook already reflects the uncertainties facing the company canada goose in its home market, in particular the increased likelihood Canada Goose Outlet that consumer behaviour will be adversely affected. Fitch current rating case assumptions already build in a fair degree of caution for canada goose replica this type of reaction with around 5% declines for canada goose deals both fixed and mobile service canada goose outlet toronto factory revenues in 2012 (after an assumed 9% decline in domestic revenue in 2011) and only slow recovery towards a flat position in 2013. Fitch will continue to monitor the situation in 2012 for any acceleration 2018 canada goose outlet of domestic pressures which may cause current rating case assumptions to breach Fitch stated net debt to EBITDA target buy canada goose jacket cheap metric of 3x for PT. Such pressures are likely to lead to a downgrade unless a path to deleveraging canada goose outlet store locations in the short term is clear.

PT has strong canada goose store liquidity. Fitch believes that its refinancing requirements have been addressed through to 2014.