Research Update: Empresa Generadora de Electricidad Itabo ?B-? Issuer Credit Rating Affirmed On Better Financial Performance Dec 12
- Language: English
- Published: December 2012
A diversified portfolio of dollar-denominated long-term energy sales contracts; and Half ownership by The AES Corp., a strong power plant operator. Association with a highly subsidized distribution sector; Low average collections from distributors; Operation in the Dominican Republic's weak regulatory framework; and The electric sector's dependence on a developing, externally affected Dominican economy. Standard & Poor's Ratings Services' ratings on Empresa Generadora de Electricidad Itabo S.A. reflect the company's deteriorating financial profile, partly a result of a higher-cost structure associated with a fixed-price coal supply contract expiring in 2011, and lower revenues from a decline in electricity sales prices. The rating also incorporates our opinion that there is a low likelihood of timely and sufficient extraordinary support from the Dominican...
Companies mentioned in this report are: Empresa Generadora de Electricidad Itabo, S. A.,AES Corp. (The),ITABO DOMINICANA
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: Full Analysis
Empresa Generadora de Electricidad Itabo, S. A.,AES Corp. (The),ITABO DOMINICANA