Fitch rates ICE bond BB+

Fitch Ratings said it expects to assign a BB+ rating to Instituto Costarricense de Electricidad's (ICE) proposed $500 million senior unsecured bond due in 2043.

The proceeds are expected to be used for general corporate purposes, including debt repayment and capital expenditures.

ICE has a long-term foreign-currency issuer default rating of BB+, long-term local-currency issuer default rating of BB+, long-term national scale (Costa Rica) rating of AAA(cri), long-term national scale (El Salvador) rating of AAA(slv), senior unsecured debt rating of BB+, senior unsecured domestic long-term debt (Costa Rica) rating of AAA(cri), senior unsecured domestic long-term debt (El Salvador) rating of AAA(slv) and senior unsecured domestic short-term debt of F1+(cri).

The ratings are supported by the company's linkage to the sovereign rating of Costa Rica, which stems from the government ownership, Fitch said.

The linkage between ICE and the government also reflects the company's political risk resulting from its tariff-approval process and government-mandated strategy in order to assure the country's electric supply, which temper the ratings to that of the sovereign, the agency said.

The ratings also reflect the government's implicit and explicit support, the company's diversified portfolio of assets and adequate financial profile, Fitch said.

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