Fitch trims Enel Chile

Fitch Ratings said it downgraded Enel Chile SA's long-term foreign and local currency issuer default ratings to BBB+ from A-. The agency, however, affirmed the company's long-term national scale rating at AA+(cl).

“The foreign- and local-currency IDR downgrades reflect Fitch's expectation that Enel Chile will have higher gross leverage, defined as total debt to EBITDA, than originally anticipated, expected to average between 3x-3.5x over the rated horizon from a previous 2.5x, according to Fitch´s base case assumptions,” the agency said in a press release.

The agency cited higher costs for coal and natural gas, which have hurt the company’s EBITDA.

The outlook is stable.

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