Summary: AES Andres Dominicana Jan 11

Standard & Poors, January 2011

Abstract
Standard & Poor's Ratings Services' ratings on AES Andres Dominicana reflect the challenges of operating in the Dominican Republic's electric industry, which faces a historically weak regulatory framework, and has an inefficient and highly subsidized distribution sector with uncertain long-term operational and financial sustainability. Weak collection rates and high energy losses within electric distribution companies affect AES Andres Dominicana's cash flow generation. The rating also considers the power sector's dependence on a developing economy, which may be vulnerable to economic stress. A diversified portfolio of dollar-denominated, long-term energy sales contracts, which limit the company's exposure to spot-market volatility and allow a pass-through of fuel costs, partially mitigate these challenges. The rating also considers AES Andres Dominicana's ownership of the only...

Companies mentioned in this report are: AES ANDRES DOMINICANA,AES Corp. (The)
Action: Review

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.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

AES ANDRES DOMINICANA,AES Corp. (The)

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