S&P boosts Enersis

Standard & Poor's said it raised its ratings on Enersis SA 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 upgrade reflects the improvement of the company's financial risk profile mainly due to the very good performance of its Chilean operations, which represent about 50% of its consolidated EBITDA adjusted by ownership, combined with adequate debt service coverage ratios and very good liquidity and financial flexibility, the agency noted.

S&P said that the BBB rating on Enersis reflects its satisfactory business risk profile resulting from the strong creditworthiness of its Chilean investments, its solid competitive position in the countries where it operates and the favorable economic condition and growing demand for power in the region.

These factors are partly offset by the higher risk of its non-Chilean investments and the exposure of its 60% owned subsidiary, Empresa Nacional de Electricidad SA (BBB/stable) to droughts, the agency added.

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