Fitch assigns AES notes BB

Fitch Ratings said it assigned a BB/RR1 rating to AES Corp.'s (AES) $500 million issue of senior unsecured notes due 2017.

AES' long-term issuer default rating is rated B+ by Fitch.

The outlook is stable.

Fitch said it views this transaction as the pre-funding of growth capital spending and debt refinancing.

For high-yield issuers, Fitch said it believes that pre-funding can be prudent during times of uncertain capital market access, adding that the rating is based on its expectation that AES will use the proceeds during the next two quarters to pay down debt and/or to invest in several different generation projects.

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