S&P raises Endesa Chile

Standard & Poor's said it raised its ratings on Empresa Nacional de Electricidad SA (Endesa Chile), by one notch, to BBB from BBB- and removed them from CreditWatch with positive implications where they were placed on Dec. 15, 2006.

The outlook is stable.

The agency said that the upgrade reflects the improvement of Endesa Chile's financial risk profile mainly due to the very good performance of its Chilean operations, which represent about 75% of its consolidated EBITDA adjusted by ownership, combined with its adequate debt service coverage ratios and very good liquidity and financial flexibility.

According to S&P, the BBB ratings on Endesa Chile reflect the relatively strong credit risk profile of its Chilean power generation assets, partly offset by investments in weaker economies such as Argentina, Brazil, Colombia and Perú, which provide some diversity, but expose the company to greater economic and financial volatility.

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