S&P puts Enersis on positive watch

Standard & Poor's said it placed the BBB- ratings on Enersis SA on CreditWatch with positive implications due to the improvement of the company's consolidated debt service coverage ratios and financial flexibility.

Enersis benefits from the improving performance of one its most important subsidiaries, 60% owned Empresa Nacional de Electricidad SA, according to S&P, which said that Endesa Chile has significantly increased its cash flow generation since 2005, mainly due to the relatively high electricity prices in Chile and good water availability in the Central Interconnected System.

The agency noted that the BBB- ratings on Enersis reflect its good business risk profile resulting from the strong creditworthiness of its Chilean investments, its strong competitive position in the countries where it operates and the growing demand for power in the region.

These factors are partly offset by the higher risk of its non-Chilean investments, S&P said.

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