Fitch assigns stable view to Rio Energy

Fitch Ratings said it affirmed Rio Energy SA, UGEN SA and Uensa SA's long-term foreign-currency issuer default ratings at B-.

The agency also said it removed the ratings from negative watch and assigned stable rating outlooks.

The ratings reflect the group's high amount of leverage, combined with inherent execution risk in completing its 300 megawatt combined cycle expansion by the first half of 2020, Fitch said.

Fitch also said it removed from negative watch and affirmed the co-issued Rio Energy, UGEN and Uensa senior secured notes due 2025 at B- with recovery rating of RR4.

Each of the issuers is jointly and severally liable for any payment obligations under the notes, the agency noted.

The company's former chairman and minority shareholder, Manuel Santos Uribelarrea, Jr., is currently under indictment for potential involvement in a federal graft scandal and is contesting the charges, Fitch added.

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