S&P upgrades Itabo

Standard & Poor's said it raised the rating on Empresa Generadora de Electricidad Itabo SA (Itabo) to B from B-.

The outlook remains stable.

The upgrade reflects improvement in the company's key financial ratios, S&P said.

Itabo is now more resilient to fluctuations in working capital, the agency said.

The ratings also consider the challenges of operating in the Dominican Republic's electric power industry, weak regulatory framework and an inefficient and highly subsidized distribution sector with uncertain long-term operational and financial sustainability, S&P said.

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