Moody's alters Angamos view to negative

Moody's Investors Service said it affirmed the Baa3 senior secured rating of Empresa Electrica Angamos SA and changed the outlook to negative from stable.

AES Gener SA announced on Aug. 8 its wholly owned subsidiary Angamos entered into agreements with its two key off-takers over the amounts due and the payments in connection with the early termination of their power purchase agreements. Moody's said it expects the agreements will become binding after the parties meet certain conditions on Aug. 31. Angamos' key off-takers are Minera Escondida Limitada (MEL; Baa2 stable) and Minera Spence SA (Spence), since their contracts represent 86% of Angamos' contracted capacity, Moody’s said.

"Today's rating action reflects the execution risk associated with Angamos' planned early redemption of the 144(Reg)A senior secured notes," said Nati Martel, a Moody’s vice president and senior analyst, in a press release.

"This risk heightens the uncertainty over Angamos' credit quality amid our expectation that the agreements achieved between Angamos and its key off-takers to terminate their PPAs will become effective on Aug. 31, 2020," added Martel.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.