LONDON (Standard & Poor's) Aug. 22, 2002--Standard & Poor's Ratings Services said today that it is maintaining the CreditWatch with negative implications on its triple-'C' ratings on AES Drax Energy Ltd.'s (Drax Energy) $200 million and £135 million ($206 million) secured subordinated notes. The CreditWatch update factors in the AES Corp.'s (BB-/Negative/--) announcement on Aug. 21, 2002, that it intends to fund the £8 million cash shortfall on interest due on the notes on Aug. 30, 2002. Despite this pledge of short-term support from the AES Corp., Standard & Poor's believes Drax Energy's credit quality to be highly vulnerable. The issuer, together with InPower Ltd. and AES Drax Holdings Ltd. (collectively Drax), ultimately provided funds for AES Drax Ltd.'s capitalization...
Companies mentioned in this report are:
- AES Drax Energy Ltd.
- The AES Corp.
- AES Drax Holdings Ltd.
Action: CreditWatch Update
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
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