Moody's cuts AES China Generating

Moody's Investors Service said it downgraded to Caa1 from B1 the senior unsecured bond rating of AES China Generating Co. Ltd.

The outlook remains negative.

The downgrade was prompted by an expectation of a material deterioration in AES Chigen's financial profile, Moody's said, as well as a heightened level of refinancing risk for the company's $103 million bond.

The company's joint-venture projects' inability to pass through high fuel costs in 2008 is expected to significantly impact dividend contributions to the company in 2009 and result in a significant deterioration in its financial performance, the agency said.

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