S&P rates Edenor bonds B

Standard & Poor's said it affirmed the B corporate credit rating on Empresa Distribuidora y Comercializadora Norte SA (Edenor) following the company's $220 million 10-year 10½% fixed-rate bond issuance due 2017.

The outlook is stable.

Proceeds are expected to be used to prepay existing debt.

S&P said the B rating reflects Argentina's high political and regulatory risk, decreasing generation capacity reserves in the Argentine electric system and the company's relatively high foreign-exchange risk.

The ratings also incorporate Edenor's solid competitive position, the projected improvement of debt service coverage ratios and favorable debt maturity profiles, according to the agency.

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