Fitch lifts Endesa Chile view to positive

Fitch Ratings said it affirmed the long-term foreign- and local-currency issuer default ratings of Empresa Nacional de Electricidad SA (Endesa Chile) at BBB+ and its long-term national scale rating at AA(cl).

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

The outlook also was revised to positive from stable.

Endesa Chile’s ratings reflect a moderate-risk business profile, underpinned by the company’s conservative commercial strategy, operations in the constructive regulatory environment of Chile and strong financial metrics, Fitch said.

The outlook revision was driven by its solid liquidity profile and credit metrics, along with its exposure to the constructive regulatory and business environment of Chile for the electric generation business.

The entity, Endesa Chile, contains all of the Chilean generation assets after the international generation assets were officially spun off in February and moved under the Enersis Americas SA corporate umbrella, S&P said.

The rated Endesa Chile bonds and debt remain in the Endesa Chile entity, the agency said.

Credit risks associated with the company under its present corporate structure are manageable and include possible demands from shareholder Enel to increase dividends, Fitch said.

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