Fitch reaffirms Eletrobras BB- ratings and shifts outlook to positive
Rhea-AI Filing Summary
Centrais Elétricas Brasileiras S.A. (Eletrobras/AXIA Energia) reported that Fitch reaffirmed its Long-Term ratings in local and foreign currency at BB-, and its Long-Term national scale rating at AA(bra), while revising the outlook from stable to positive. Fitch’s change in outlook is based on expectations of higher cash generation and improved credit metrics, supported by announced asset sales and more favorable assumptions for energy sale prices. The ratings also reflect a large and diversified asset base that spreads operational and regulatory risks, as well as strong liquidity and financial flexibility to cover debt and support planned investments.
Positive
- None.
Negative
- None.
Insights
Fitch kept Eletrobras at BB- but raised its outlook to positive, citing stronger cash generation and asset sales.
Fitch reaffirmed Eletrobras’ Long-Term ratings in local and foreign currency at BB-, and its Long-Term national scale rating at AA(bra), while changing the rating outlook from stable to positive. This indicates that the agency currently sees the company’s credit profile as unchanged in level but with improving conditions that could support a future upgrade if trends persist.
The positive outlook is tied to expectations of higher cash generation and better credit metrics, driven by announced asset sales and more favorable assumptions for energy sale prices. Fitch also highlights a relevant and diversified asset base that reduces operational and regulatory concentration risk, along with strong liquidity and financial flexibility to meet debt obligations and fund increased investment plans.
From a funding perspective, maintaining BB- ratings with a positive outlook may help Eletrobras in future financing negotiations and capital markets access, especially if the expected asset sales and cash flow improvements materialize as described in Fitch’s report.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of November, 2025
Commission File Number 1-34129
CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS
(Exact name of registrant as specified in its charter)
BRAZILIAN ELECTRIC POWER COMPANY
(Translation of Registrant's name into English)
Rua da Quitanda, 196 – 24th floor,
Centro, CEP 20091-005,
Rio de Janeiro, RJ, Brazil
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F _______
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
Rating Fitch
Rio de Janeiro, November 17, 2025, AXIA Energia announces that the rating agency Fitch has reaffirmed the Company's Long-Term ratings in local and foreign currency at BB-, and the Long-Term national scale rating at AA(bra), changing the outlook from stable to positive.
The change in outlook reflects the expectation of higher cash generation and improvement in credit metrics, due to the combination of announced asset sales and Fitch’s more favorable assumptions for the group’s energy sale prices.
The Company’s ratings consider its relevant and diversified asset base, which dilutes operational and regulatory risks. AXIA Energia benefits from strong liquidity and financial flexibility to meet its debt obligations and plans for increased investment.
Fitch’s full report is available on the Company’s website (https://ri.axia.com.br) and on the CVM website (https://www.cvm.gov.br).
Eduardo Haiama
Vice President of Finance and Investor Relations
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 17, 2025
| CENTRAIS ELÉTRICAS BRASILEIRAS S.A. - ELETROBRÁS | ||
| By: |
/S/ Eduardo Haiama |
|
|
Eduardo Haiama Vice-President of Finance and Investor Relations |
||
FORWARD-LOOKING STATEMENTS
This document may contain estimates and projections that are not statements of past events but reflect our management’s beliefs and expectations and may constitute forward-looking statements under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. The words “believes”, “may”, “can”, “estimates”, “continues”, “anticipates”, “intends”, “expects”, and similar expressions are intended to identify estimates that necessarily involve known and unknown risks and uncertainties. Known risks and uncertainties include, but are not limited to: general economic, regulatory, political, and business conditions in Brazil and abroad; fluctuations in interest rates, inflation, and the value of the Brazilian Real; changes in consumer electricity usage patterns and volumes; competitive conditions; our level of indebtedness; the possibility of receiving payments related to our receivables; changes in rainfall and water levels in reservoirs used to operate our hydroelectric plants; our financing and capital investment plans; existing and future government regulations; and other risks described in our annual report and other documents filed with the CVM and SEC. Estimates and projections refer only to the date they were expressed, and we do not assume any obligation to update any of these estimates or projections due to new information or future events. Future results of the Company’s operations and initiatives may differ from current expectations, and investors should not rely solely on the information contained herein. This material contains calculations that may not reflect precise results due to rounding.
FAQ
What rating action did Fitch take on Eletrobras (EBR)?
Fitch reaffirmed Eletrobras’ Long-Term ratings in local and foreign currency at BB- and its Long-Term national scale rating at AA(bra), while revising the outlook from stable to positive.
What changed in Eletrobras (EBR) Fitch rating outlook?
Fitch changed the outlook on Eletrobras’ ratings from stable to positive, signaling an improved view of its future credit profile while keeping the current rating levels.
Why did Fitch move Eletrobras (EBR) outlook to positive?
The outlook change reflects expectations of higher cash generation and improved credit metrics, supported by announced asset sales and more favorable assumptions for the group’s energy sale prices.
What strengths did Fitch highlight for Eletrobras (EBR)?
Fitch cited Eletrobras’ relevant and diversified asset base, which helps dilute operational and regulatory risks, and noted its strong liquidity and financial flexibility to cover debt and support increased investment plans.
Where can investors read the full Fitch report on Eletrobras (EBR)?
The full Fitch report is available on the company’s investor relations website (https://ri.axia.com.br) and on the CVM website (https://www.cvm.gov.br).
Does the Fitch action on Eletrobras (EBR) involve an immediate rating upgrade?
No. Fitch reaffirmed the BB- and AA(bra) ratings and only revised the outlook to positive, which indicates potential for improvement but not an immediate upgrade.
