Fitch affirms AES El Salvador

Fitch Ratings said it affirmed AES El Salvador Trust's foreign- and local-currency issuer default ratings at BB and its $300 million of political risk-protected bonds due 2016 at BB. It also affirmed the national scale ratings of Compania de Alumbrado Electrico de San Salvador and Empresa Electrica de Oriente at A+(slv). The outlook is stable.

AES El Salvador Trust is a special-purpose vehicle created to issue $300 million of notes on behalf of AES El Salvador SA de CV.

The agency said the ratings are based on the combined credit strength of the group's operating assets and reflect its relatively large size, low business risk profile and the predictable cash flow generation resulting from its efficient operating platform.

The ratings also consider its relatively high leverage, the continued sovereign risk exposure through subsidies and intervention and the weakening macroeconomic conditions in El Salvador, Fitch said.

The leverage ratio was 5.1 times as of December.

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