Fitch lowers Enersis Americas

Fitch Ratings said it downgraded Enersis Americas SA’s long-term foreign- and local-currency issuer default ratings to BBB from BBB+ and long-term national scale rating to AA-(cl) from AA(cl).

The agency also said it affirmed the company’s short-term national scale rating at N1+.

These rating actions affect the company’s outstanding Yankee bonds and domestic bonds, Fitch said.

The outlook is stable.

The ratings reflect the company’s solid business platform with a strong degree of business and geographic diversification, Fitch said, and solid financial and operational metrics.

The downgrades consider expected greater cash flow volatility because the new entity – post the Chilean spin-off – is more exposed to the Brazilian market for its cash flow mix.

The ratings also incorporate the company’s dependence on dividend payments from its subsidiaries to repay its own debt, Fitch said, along with the seasonal and regional cash flow volatility.

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