Brazil Utility Cut to Junk by Moody's Amid Sao Paulo Drought

  • Outlook for Sabesp's Ba1 rating is negative, Moody's says
  • Utility could breach financial covenants in next quarters

Sao Paulo’s water utility was cut to junk by Moody’s Investors Service, which said the worst drought in decades had weakened the business and eroded the company’s liquidity.

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