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Bulletin: AES Corp.'s Planned Sale Of $1.58 Billion In Stock To China Investment Corporation Does Not Affect Ratings Nov 09 Product Image

Bulletin: AES Corp.'s Planned Sale Of $1.58 Billion In Stock To China Investment Corporation Does Not Affect Ratings Nov 09

  • ID: 1833820
  • November 2009
  • Region: China
  • Standard & Poors

Abstract
NEW YORK (Standard & Poor's) Nov. 6, 2009--Standard & Poor's Ratings Services noted AES Corp.'s (BB-/Stable/--) announcement of a binding stock purchase agreement with a wholly-owned investment subsidiary of China Investment Corporation (CIC) to raise $1.58 billion of new equity as a credit positive but does not affect ratings or outlook. The funds will be used to fund growth opportunities instead of debt reduction, which could turn out to be credit neutral. While growth could expand the company's geographical footprint, we would still expect investments to be biased towards long-term contracted businesses. At close, CIC will have an approximately 15% stake in the company. CIC will also raise an additional $571 million of equity for an approximate 35% interest in...

Companies mentioned in this report are: AES Corp. (The)
Action: Bulletin

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

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AES Corp. (The)

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