Fitch affirms Itabo

Fitch Ratings said it affirmed Empresa Generadora de Electricidad Itabo, SA's (Itabo) international foreign- and local-currency issuer default ratings at B- and national scale rating at BBB(dom).

The agency affirmed Itabo Finance SA's $125 million of senior notes due 2013 at B-/RR4.

The outlook is positive.

Ratings consider the risks of operating electric generation assets in the Dominican Republic, where distribution companies have historically reported poor operating performance, characterized by very high losses and low collections, the agency said.

Ratings are supported by the company's strong competitive position as the lowest-cost thermoelectric generator in the country, as well as its somewhat solid financial profile and experienced management team, Fitch said.

As of year-end 2007, the issuer's total debt-to-EBITDA ratio was 3.7 times.

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