Moody's rates Hecsa B2

Moody's Latin America said it assigned a B2 global local-currency corporate family rating and an A2.ar national scale rating to Hidroelectrica El Chocón (Hecsa).

The outlook is stable.

The agency said the ratings are based on Hecsa's 30-year concession for the generation and sale of electricity from two relatively low-cost hydroelectric plants located in the province of Neuquen, the improved operating performance achieved over the last two years despite an uncertain regulatory environment and the utilization of increased levels of cash flow to reduce leverage and build liquidity.

The ratings are significantly constrained by the uncertain regulatory framework that currently exists for utilities operating in Argentina and the risks Hecsa continues to face arising from potential adverse hydrology results and currency devaluation given its sizable dollar debt position, Moody's said.

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