Fitch ups three Dominican electric companies

Fitch Ratings said it upgraded the foreign- and local-currency issuer default ratings of AES Andres Dominicana SPV, Empresa Generadora de Electricidad Haina and Itabo Dominicana SPV, as well as their respective long-term debt ratings to B from B-. The recovery rating is RR4.

The outlook has been revised to positive from stable.

The upgrade follows the outlook revision of the Dominican Republic's sovereign ratings to positive from stable, Fitch said, as well as the positive impact of recent policy changes.

Over the past year, the government has implemented changes aimed at strengthening the operational and financial viability of the electricity sector in the country, the agency said.

Although the companies' ratings continue to reflect the electricity sector's high dependency on transfers from the central government to service its financial obligations, Fitch said it expects the continuation of recent policy changes to allow distribution companies to reach breakeven cash flow generation during 2012.

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