Fitch upgrades Interconexion Electrica

Fitch Ratings said it upgraded Interconexion Electrica SA ESP's foreign- and local-currency issuer default ratings to BBB from BBB-.

The outlook was revised to stable from positive.

Fitch also said it affirmed Interconexion Electrica's local bonds at AAA(col) and F1+(col).

The outlook is stable.

The upgrades reflect the company's strong financial profile, characterized by stable and predictable cash flows, Fitch said, and an expectation that credit metrics will remain at current levels for the medium term.

The upgrade also considers the company's exit from the Autopistas de la Montana project, which added significant uncertainty to the company's long-term capital structure, the agency said.

The ratings also take into account the company's low business risk profile, which is characteristic of the power transmission business, Fitch said, and the company's natural monopoly position and geographic diversification.

The ratings are underpinned by its moderate leverage level, comfortable liquidity and strong interest-coverage metrics, the agency said.

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