Summary: AES Corp. (The) Dec 05
- ID: 1834950
- December 2005
- Standard & Poors
The rating on The AES Corp. reflects the risks of its reliance on substantive distributions from jurisdictions where considerable regulatory and operating uncertainties exist to support its parent-level debt, some exposure to merchant power markets, and a highly leveraged, although improving, balance sheet. Although the level of distributions to AES from operating subsidiaries seems to have stabilized at around $1 billion, some of those distributions are very speculative, including fairly sizable distributions in 2004 from Venezuela ($77 million), Nigeria ($33 million), and Argentina ($39 million). Also, 2004 distributions included a one-time distribution of about $100 million from subsidiary AES Gener S.A., representing the release of trapped cash. These risks are tempered by the diversification of AES' portfolio, a stable base...
Companies mentioned in this report are:
- The AES Corp.
- Indianapolis Power & Light Co.
- AES Gener S.A.
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