Research Update: Corporacion Electrica Nacional S.A. Rated 'B', C.A. La Electricidad de Caracas 'B-' Rating Withdrawn Jun 12
- Language: English
- Published: June 2012
The ratings on IPALCO Enterprises Inc., the parent of Indianapolis Power & Light Co. (IPL) are on CreditWatch with negative implications because of the company's link to The AES Corp. AES was placed on CreditWatch on Feb 15, 2002 reflecting the Feb. 12, 2002 decision by Venezuela to allow the Bolivar to float, resulting in extremely volatile trading in the currency. One of AES' largest cash flow generating businesses is C.A. La Electricidad De Caracas (EDC; B/Watch Neg) in Venezuela. Substantial devaluation of the Bolivar, which Standard & Poor's believes to be significantly overvalued, could negatively affect distributions from EDC. EDC benefits from a favorable tariff arrangement that allows for adjustments based upon currency devaluation, but this arrangement has yet...
Companies mentioned in this report are: IPALCO Enterprises Inc.
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IPALCO Enterprises Inc.