S&P pulls CE Oaxaca units from watch

S&P said it affirmed its BBB ratings on CE Oaxaca Dos S de RL de CV and CE Oaxaca Cuatro S. de RL de CV and removed their ratings from CreditWatch where they were placed with negative implications and assigned negative outlooks.

Both issuers faced constraints imposed by the grid's operator Centro Nacional de Control de Energia, which caused their energy output to drop more than 10% each compared with the same period in recent years, the agency said.

“The negative outlook reflects a potential downgrade by one or more notches if energy spills are persistent and cumulatively cause an energy output decrease of more than 10% from the P-90 scenario in the next 12-24 months, weakening debt service coverage ratio (DSCR) below 1.4x. In addition, we could lower the rating if market risk increases volatility in the project's cash flows,” S&P said about both entities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.