Fitch lowers Oaxaca IV view to stable

Fitch Ratings said it affirmed the BBB- rating on CE Oaxaca Cuatro, S. de RL de CV's (Oaxaca IV) $150.2 million senior secured notes due 2031.

The outlook also was revised to stable from positive.

The outlook revision reflects the long-term view of the project's exposure to cost uncertainty combined with an increasing debt-service profile, Fitch said.

The agency has not been provided with evidence that costs are likely to be lower than budgeted in the coming years.

The rating is driven by the project's robust cash flow generation at levels close to the agency's base case, Fitch added.

Cash flow is supported by stable energy production resulting from the project's location in an area with proven high wind resources, the agency said.

The rating also reflects a strong fixed-price contract with an investment-grade counterparty and a standard debt structure that features some back-loading of the debt, Fitch said.

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