Fitch lowers AES Panama view to stable

Fitch Ratings said it affirmed the long-term local- and foreign-currency issuer default ratings of AES Panama, SRL at BBB-.

Fitch also said it affirmed the national scale rating at AA+(pan).

The outlook also was revised to stable from positive.

The ratings reflect AES Panama's solid credit metrics, strong market position and efforts to manage hydrology risk with its re-contracting strategy, underpinned by Panama's evolving electricity matrix designed to mitigate spot price volatility, the agency said.

Fitch said it expects the company's 2019 gross leverage to rise to 3.3x due to anticipated challenging hydrology before returning to lower than 3x over the medium term.

The outlook revision to stable from positive reflects the company's continued vulnerability to hydrology risk as shown by its performance during the current year, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.