CTEEP - COMPANHIA DE TRANSMISSÃO DE ENERGIA ELÉTRICA PAULISTA

CNPJ/MF 02.998.611/0001-04 NIRE 35300170571

ANNOUNCEMENT TO THE MARKET Fitch Upgrades CTEEP's rating from AA+(bra) to 'AAA(bra)' - with Stable Outlook

Fitch Ratings has upgraded CTEEP - Companhia de Transmissão de Energia Elétrica Paulista S.A.´s ratings as follows:

 Long-Term Corporate National Scale Rating from AA+(bra) to 'AAA(bra)' with a Stable Outlook; and

 Rating of the first debentures issue with a balance of R$ 45.8 million and maturing in 2017, from AA+(bra) to 'AAA(bra)'.

Fitch states that the upgrade reflects largely CTEEP's financial profile over the coming years based on the outlook for receipt of indemnity payments as from 2017 for assets energized prior to May 2000 (RBSE), payments to be effected through the Annual Revenue Allowance (RAP), pursuant to Ministry of Mines and Energy Order 120, to be regulated via a Public Hearing.

The agency also highlights CTEEP's predictable operating cash flow together with the low risk profile for the electric energy transmission business as a whole.

The press release can be accessed through the Internet from the Company's investor relations website (http://www.cteep.com.br/ri under Investors Information - Ratings).

São Paulo, August 23, 2016 Rinaldo Pecchio Jr.

Chief Financial and Investor Relations Officer

CTEEP - Companhia de Transmissão de Energia Elétrica Paulista published this content on 22 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 August 2016 13:44:06 UTC.

Original documenthttp://www.cteep.com.br/ir/documentos/1244-23082016Rating-Corporativo-22Ago2015.pdf

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