S&P affirms AES Panama

Standard & Poor's said it affirmed its BBB- long-term corporate credit rating on AES Panama SA and its BBB- senior unsecured debt rating on AES Panama's $300 million senior notes due in 2016.

The outlook is stable.

The agency said the ratings reflect AES Panama's strong profitability, projected cash-flow stability as a result of the somewhat diversified long-term purchase-power agreements signed with the three distribution companies in Panama, the growing prospects for power consumption in Panama and Panama's attractive and business-oriented regulatory framework that seeks to optimize the system's efficiency.

At the same time, the rating incorporates exposure to hydrological conditions (drought seasons), the aggressive capital structure due to the investments needed to upgrade and repower the facilities, the high energy prices that could affect distribution companies' future collection rates and a high dividend payout policy, S&P said.

© 2015 Prospect News.
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