Fitch rates Edesal issue B-

Fitch Ratings said it assigned foreign- and local-currency issuer default ratings of B- to Empresa Distribuidora de Electricidad de San Luis, along with a B- international scale rating and recovery rating of RR4 to the up to $15 million proposed debt issuance. The new notes also have been assigned a long-term national scale rating of BBB+(arg).

The outlook is stable.

The purpose of the transaction is to refinance the outstanding amount for $45.3 million of the existing notes due in December 2010. The proposed issuance will be guaranteed by its parent company, Empresa Distribuidora Regional SA.

The ratings reflect the expected stability of the parent's consolidated revenues, the maintenance of a conservative leverage and solid credit metrics, Fitch said.

The ratings are tempered by exchange-rate volatility and the inherent regulatory risk, as there is uncertainty about the timing and amount of future tariff adjustments for the operating companies, the agency said.

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