S&P upgrades Eten notes to BBB

S&P said it raised its issue-level rating on Planta de Reserva Fria de Generacion de Eten SA's (Eten) $132.8 million fixed-interest senior secured notes due 2033 to BBB from BBB-.

The outlook remains stable.

S&P said the upgrade reflects the regulator's July 2015 approval of the commercial operation date for the company, which began receiving availability payments under its concession contract. Although Eten began operating later than what was originally planned, it didn't incur penalties, and its cash flow projections for 2016 and onwards remain in line with the agency’s expectations, given their nature.

Eten also benefits from Corporation Andina de Fomento's (AA-/negative/A-1+) partial credit guarantee for 20% of the project's outstanding notes, which will be now fully available as an extraordinary liquidity source in its operating phase, S&P said.

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