S&P cuts Petropower Energia

Standard & Poor's said it lowered its senior secured debt rating on Petropower Energia Ltda. to BBB- from BBB.

The outlook is stable.

The downgrade reflects Petropower's higher counterparty risk following Empresa Nacional del Petroleo's recent downgrade, S&P said.

The agency said it considers the project's reliance on one large contract with Empresa Nacional del Petroleo to service its debt constitutes the weakest link for Petropower's rating.

The stable outlook reflects a belief that the project agreements and insurance coverage should provide enough resources in the short term to meet debt service and finance asset repairs, the agency added.

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