Fitch affirms Fortuna

Fitch Ratings said it affirmed the BBB- rating assigned to Empresa de Generacion Electrica Fortuna SA's senior notes due 2013 and the company's BBB- local and foreign currency ratings. The outlook is stable.

Fitch said the ratings reflect Fortuna's position as the largest hydroelectric plant in Panama; its competitive dispatch priority, supported by a large storage reservoir; a sound operating strategy to optimize contract electricity sales; its acceptable projected debt-service coverage under various stress scenarios; and absence of foreign-exchange risk.

The ratings also incorporate potential weaknesses, including exposure to hydrology, commodity price risks, exposure to regulatory considerations and potential for long-term competitive price pressures, the agency said.

The company's 2005 EBITDA to interest ratio was 5.9x, and its debt to EBITDA ratio was 1.5x.

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