Fitch might cut Itabo notes

Fitch Ratings said it affirmed the long-term foreign and local currency issuer default ratings of Empresa Generadora de Electricidad Itabo SA (Itabo) at BB-.

The outlook is stable.

Additionally, Fitch placed the BB- senior unsecured notes rating on rating watch negative.

The agency said the negative rating watch on the notes reflects the uncertainty surrounding the near-term financial impacts of a lightning strike that disabled AES Andres BV's (BB-/rating watch negative) generation units on Sept. 3.

Itabo's 2026 notes were issued attached to the AES Andres/Dominican Power Partners issuance, although there exist no cross-guarantees or cross-default clauses between the Itabo notes and the Andres/DPP notes.

“The attached 2026 issuances consider several detachment events, at which point the risk profiles of the two issuances would be assessed separately,” Fitch said in a news release.

“Until that time, however, the ratings are linked.”

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