(SBS) Companhia de Saneamento - Ratings and Ratios

Companhia de Saneamento Básico do Estado de São Paulo - SABESP is the largest water and sewage utility company in Brazil, operating exclusively in the state of São Paulo. The company provides essential sanitation services, including water treatment, distribution, and sewage collection and treatment. SABESP serves a diverse customer base, including residential, commercial, and industrial users, as well as public institutions. As of December 31, 2023, it operates 10.3 million water connections and 8.8 million sewage connections across 376 municipalities in São Paulo State. Established in 1954, SABESP is a state-owned enterprise headquartered in São Paulo, Brazil, and is listed on the NYSE under the ticker symbol SBS.

SABESP plays a critical role in ensuring access to clean water and sanitation services for over 28 million people in São Paulo State. The company has historically focused on expanding its infrastructure to meet growing urbanization needs and improving environmental sustainability. SABESP has invested heavily in modernizing its water treatment plants and sewage systems to align with Brazils environmental regulations and global best practices.

The companys financial performance is closely tied to Brazils economic conditions and regulatory framework. As a monopoly in its operating region, SABESPs revenue stability is underpinned by long-term contracts with municipalities. However, it faces challenges such as currency fluctuations, inflation, and rising operational costs. SABESP has been actively pursuing efficiency improvements and tariff adjustments to maintain profitability.