Moody's may cut AES Gener rating

Moody's Investors Service said it placed the B2 rating of AES Gener SA's senior unsecured notes under review for possible upgrade.

Moody's said the review is prompted by prospective financial improvements, reflecting cash to be received from parent AES Corp., stronger performance in the company's Chilean operations and in Chivor, Columbia, as well as more favorable debt terms under negotiation at the company's Termoandes, Interandes, subsidiaries in Argentina.

Overall, the company's business outlook is improving, the agency said. Currently, the company is undertaking a restructuring of its balance sheet including receipt of cash from the parent, issuance of new debt, and a tender offer for the outstanding senior unsecured Yankee notes that are currently rated B2.

Moody's said it is not clear whether all of the outstanding bonds will be tendered.

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