Fitch assigns BBB- to Guacolda IDR, debt

Fitch Ratings said it assigned Empresa Electrica Guacolda SA initial BBB- long-term foreign and local currency issuer default ratings.

The outlook is stable.

In addition, the agency assigned a BBB-(exp) long-term rating to the company's proposed senior unsecured debt issuance of up to $500 million with a 10-year bullet maturity.

Proceeds will be used to refinance the company's existing debt and related costs.

Fitch said the ratings reflect Guacolda's solid business position, which is supplemented by the efficiency of its operations, competitive generation costs and the favorable geographic location of its generation units.

In addition, the ratings reflect the company's strong operational support of its controlling partner, AES Gener SA (BBB-, stable), the agency said.

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