S&P lifts AES Panama to stable

Standard & Poor’s said it revised the outlook on AES Panama SRL to stable from negative.

The agency also said it affirmed the company’s BB- ratings and assigned a BB- rating on AES Panama’s proposed seven-year senior unsecured bonds for up to $375 million.

The proceeds of the bonds will be used to refinance its existing senior unsecured bond due 2016 and syndicated bank loan, S&P said.

The outlook revision reflects an expectation that the company’s finances will strengthen in 2015 and afterward as a result of improved hydrology conditions, overall lower spot prices and the additional EBITDA generation from the power barge, Estrella del Mar, S&P said.

Spot prices in Panama have stabilized as oil prices dropped, installed capacity in the system rose about 15% and hydrology conditions improved, the agency said.

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