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)
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