S&P downgrades Haina, stable outlook

S&P said it lowered the issuer credit rating on Empresa Generadora de Electricidad Haina SA (Haina) to B from B+ and revised the outlook to stable from negative.

The agency also said it subsequently withdrew the rating at the issuer's request.

The downgrade reflects Haina's key credit metrics that are now weaker than expected a year ago, S&P said.

Although the company was awarded new medium-term purchase agreements between late 2017 and beginning of 2018, S&P said it currently believes the improvement was negligible because key credit metrics are still expected to weaken.

In the next two years, the agency said it expects Haina's EBITDA to be about $85 million, which the company will mainly use for the construction of two wind farms that might start operations between 2019 and 2020.

The ratings also incorporate the challenges of operating in the Dominion Republic's electric power industry, which has a weak regulatory framework, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.