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Bulletin: AES Subsidiary's Secondary Offering Favorable For Credit; No Ratings Effect Sep 06
Standard & Poors, Sep 2006
Abstract
NEW YORK (Standard & Poor's) Sept. 27, 2006--Standard & Poor's Ratings Services today noted that the announcement of a secondary offering by a wholly owned subsidiary of Brasiliana Energia S.A. is a favorable credit development for Brasiliana's joint owner, The AES Corp. (BB-/Stable/--), but will not affect the ratings or outlook on AES. Brasiliana will use the expected proceeds of nearly $530 million to $600 million to repay about $595 million of debt that has covenants restricting dividend distributions. Elimination of this restrictive debt frees up future cash flow for other AES growth projects. Management estimates incremental cash flow of about $50 million for AES from Brasiliana's subsidiary distributions. Following completion of the non-voting preferred share transaction, AES will continue...
Companies mentioned in this report are: AES Corp. (The),Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.
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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