S&P: Inkia Energy notes BB

Standard & Poor's said it assigned a BB corporate credit rating to Inkia Energy Ltd., along with a BB rating to its $300 million senior unsecured notes due 2021.

The outlook is stable.

The ratings reflect the company's fair business risk profile and aggressive financial risk profile, S&P said.

This assessment reflects the company's reliance on dividends from its operating subsidiaries to service its debt, an aggressive investment plan leading to significant consolidated debt and the higher risks associated with operating some Caribbean and Bolivian assets that expose the company to greater economic volatility, the agency said.

The offsetting factors are its leading position in the Peruvian market, relatively stable and predictable revenue base due to its subsidiaries' long-term power purchase agreements with creditworthy counterparties and rising electricity demand amid Latin America's solid economic growth prospects, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.