S&P affirms Emgesa on spin-off news

Standard & Poor's said it affirmed the BBB corporate credit and issue-level ratings on Emgesa SA ESP.

The outlook remains stable.

The shareholders of Enersis SA, Empresa Nacional de Electricidad SA Chile and Chilectra SA approved the spin-off of their Chilean operations from their foreign operations, S&P said.

This spin-off and the name change to Enersis Americas are expected to be completed in February 2016, the agency said.

Following the restructuring, Enersis Americas will be a holding company with investments mainly in power generation, transmission and electricity distribution in Colombia, Brazil, Peru and Argentina through its subsidiaries, S&P said.

The stable outlook reflects an expectation that Emgesa will post a debt-to-EBITDA ratio of less than 2x, the agency said.

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