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Bulletin: AES' Proposed Sale Of Venezuelan Unit Does Not Affect Rating Feb 07
Standard & Poors, Feb 2007
Abstract
NEW YORK (Standard & Poor's) Feb. 9, 2007--Standard & Poor's Ratings Services said that AES Corp.'s (BB-/Stable/--) preliminary agreement to sell its 82% stake in La Electricidad de Caracas (EDC), a regulated electricity business in Venezuela, to the Bolivarian Republic of Venezuela (BB-/Stable/B) for $740 million (after 2007 dividends) does not affect the ratings or outlook on AES at this time. While EDC has provided about $665 million of dividends to AES between 2000 and 2006, our assessment of AES parent operating cash flow incorporates the high-risk nature of EDC's distributions. We estimate EDC would have provided about $80 million in annual distributions, or about 9% of AES' parent cash flow, in the future. Eliminating distributions of this magnitude would...
Companies mentioned in this report are: AES Corp. (The),Venezuela (Bolivarian Republic of)
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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