Fitch ups Electricidad de Caracas

Fitch Ratings said it has upgraded the senior unsecured foreign currency rating of CA La Electricidad de Caracas to BB- from B+.

The company's senior unsecured local currency rating remains at BB-, the long-term national rating at AA+(ven), and short-term national rating at F-1+(ven) since Fitch's affirmation in October.

The foreign currency rating upgrade also applies to the company's $260 million bond issuance due 2014.

The outlook remains stable.

The action follows Fitch's upgrade of the long-term foreign currency and long-term local currency ratings of the Bolivarian Republic of Venezuela to BB- from B+, as well as the upgrade of the country ceiling to BB-.

The improvement in the sovereign rating has eased the rating constraints on the company, lowering transfer and convertibility risks and allowing for its foreign currency ratings to be more reflective of the company's financial condition, Fitch said.

The sovereign upgrade reflects significant improvements in external debt and liquidity ratios because of windfall oil export receipts, leaving them significantly better than peer BB levels, Fitch said.

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