Moody's drops Inversiones Alsacia

Moody's Investors Service said it downgraded the rating on Inversiones Alsacia SA to B2 from Ba3.

The rating was placed on review for further downgrade.

Moody's said the downgrade reflects the project's poor financial performance and increased instability as evidenced by: (a) Gailure to maintain a minimum Debt Service Coverage Ratio of 1.1x, which could trigger Early Amortization; (b) failure to meet the required balance on the O&M account, which could trigger an event of default; and (c) draws on the debt service reserve fund that has left the account underfunded, increasingly exposing the transaction to a potential default.

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