Fitch affirms Enel Fortuna

Fitch Ratings said it affirmed Enel Fortuna, SA's (formerly Empresa de Generacion Electrica Fortuna SA) local- and foreign-currency issuer default ratings at BBB-. The rating action applies to $113 million of outstanding senior unsecured notes due 2013.

The outlook is stable.

The agency said the ratings reflect Fortuna's strong credit metrics, which are characterized by low leverage, healthy interest coverage and stable and growing cash flow generation, and by its favorable contracted position, its competitive dispatch position and the low foreign-exchange risk.

The rating also incorporates potential weaknesses, including exposure to hydrology, commodity price risks, regulatory considerations and potential for long-term competitive price pressures as well as the uncertain effect the current global financial crisis could have in Panama, Fitch said.

Fortuna reported a total debt-to-EBITDA ratio of 1.3 times for the last 12 months ended June 30

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