Fitch to rate Albanesi reopening B+

Fitch Ratings said it expects to assign a long-term rating of B+ to Albanesi SA's proposed reopening of up to $86 million to its 9 5/8% senior unsecured notes due 2023.

In addition to the guarantee of the parent company, the group's subsidiaries Generacion Mediterranea SA and Central Termica Roca SA will remain jointly and severally liable for all obligations under the notes.

The company expects to use the proceeds to refinance upcoming maturities and to fund capital investments.

“Albanesi's ratings reflect the Argentine electricity industry's high regulatory risk despite slight improvements due to recent regulatory changes; the company's counterparty risk to Cammesa as main off-taker; and its improving metrics supported by the relatively stable and predictable cash flow generation,” Fitch said in a news release.

“The company's ratings also reflect the macro-economic environment, including high inflation and steep currency devaluation and implicit support and synergies with its natural gas trader sister company, Rafael G. Albanesi (RGA).”

© 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.