S&P affirms Electricidad de Caracas

Standard & Poor's said it affirmed its B long-term corporate credit rating on CA La Electricidad de Caracas (EDC) and its B rating on Electricidad de Caracas Finance BV's $260 million senior unsecured notes.

The outlook is stable.

S&P noted that it previously upped its long-term local and foreign currency sovereign credit ratings on the Bolivarian Republic of Venezuela to BB- from B+, a decision supported by the continued sharp improvements in Venezuela's external indicators, which are attributable to a large current account surplus, a high level of international reserves and lower external debt in addition to buoyant economic growth and the potential buyback of external debt.

However, the agency added, entities in Venezuela continue to face high risk, even as the credit quality of the sovereign itself has improved, including country risk, responsible for the growing differential between the sovereign rating and the ratings on industrial corporations.

© 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.