Fitch affirms EGE Haina

Fitch Ratings said it affirmed Empresa Generadora de Electricidad Haina, SA's (EGE Haina) B- international foreign- and local-currency issuer default ratings as well as its $175 million of notes due 2017 with a recovery rating at RR4.

The outlook is stable.

Ratings incorporate the risks of operating electric generation assets in the Dominican Republic, where distribution companies have historically reported poor operating performance, characterized by very high losses and low collections, the agency said.

Ratings also consider the electricity sector's dependence on government subsidies as the current government has subsidized distribution companies' losses over the past three years, Fitch noted.

EGE Haina benefits from its diversified portfolio of assets using different fuel sources to generate electricity, its strong market position and its operating efficiency, the agency said.

As of December, the company's total debt-to-EBITDA ratio was 2.5 times.

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