Moody’s turns Cochrane view to negative

Moody's Investors Service said it affirmed Empresa Electrica Cochrane SpA's Ba1 senior secured global notes and changed the outlook to negative from stable.

“Today's rating action reflects Moody's perception of a deterioration in the weighted average credit quality of the project's off-takers, given that one of those is currently experiencing high liquidity pressure due to a significant maturity of a shareholder loan in less than a year.

“While Cochrane continues to benefit from its strong contractual position, with a significant portion of its revenues and cash flows arising from fixed charges, the negative outlook reflects our view that a weakened counterparty risk profile could expose the project to delays in collection, contractual disputes or ultimately more volatile revenues if part of the contracted output is redirected to the spot market,” the agency said in a press release.

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