Moody's may downgrade Fenix Power

Moody's Investors Service said it placed the Baa3 senior unsecured rating on Fenix Power Peru SA's $340 million notes due 2027 under review for downgrade.

The review reflects significant financial underperformance in 2018, largely a reflection of lower energy demand and depressed spot power prices in Peru, Moody's said.

This is combined with higher-than-expected cash flow distribution to shareholders, the agency said.

The fundamentals of the Peruvian energy market have been affected by a significant increase in energy supply not accompanied by demand, Moody's added.

The review will focus on the analysis of medium- and long-term expectations for the fundamentals of the Peruvian energy market, the agency said, as well as any plans envisioned by the company's shareholders that could potentially assist Fenix during a more sustained period of underperformance.

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