Moody's rates Endesa Chile bonds Baa2

Moody's Investors Service said it assigned a Baa2 rating to Empresa Nacional de Electricidad SA's (Endesa Chile) proposed $400 million 10-year senior unsecured yankee bonds.

Concurrently, the agency affirmed Endesa Chile's Baa2 senior unsecured rating.

The outlook is stable.

Proceeds will be largely used to repay Endesa Chile's outstanding intercompany loan with its majority shareholder Enersis SA that currently estimates at $350 million, as well as for other general corporate purposes.

"Since Moody's already calculates Endesa Chile's leverage credit metrics incorporating the Enersis' intercompany loan, this proposed transaction does not change Endesa Chile's leverage position," Moody's vice president Natividad Martel said in a news release.

"The affirmation of the Baa2 rating is largely driven by the expectation that Endesa Chile will continue to report 3-year average credit metrics that will remain commensurate with the Baa-rating category according to the financial ratio guidelines for Baa-rated power producers outlined in Moody's Unregulated Power Generation Companies ratings methodology."

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