Moody's rates Inkia, notes B1

Moody's Investors Service said it assigned a B1 corporate family rating to Inkia Energy Ltd. and a foreign-currency B1 senior debt rating on the global-scale to its planned issuance of up to $300 million of senior notes.

The outlook is stable.

Proceeds of this offering are expected to be used for the repurchase of Inkia's outstanding nuevos-soles 9¼% senior secured bonds due in 2015, for working capital purposes, to finance its expected equity contribution in Cerro and for other projects and acquisitions that the company may pursue in the future.

The ratings reflect Inkia's historical and projected consolidated credit metrics, which position the company at the upper end of the B-rating category for unregulated power companies, Moody's said.

The ratings incorporate the importance of the Peruvian subsidiaries including not only the future expected cash flows from Kallpa but also from its 21.1% economic interest in Edegel, the agency said.

The ratings also acknowledge the asset concentration that exists at Kallpa, which is somewhat balanced with the geographic diversity of Inkia's cash flow stream from its investments in other Latin American and Caribbean countries, the agency added.

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