Summary: AES Chivor & CIA SCA ESP Jun 06
- ID: 1835172
- June 2006
- Standard & Poors
The 'B+' ratings on AES Chivor & CIA SCA ESP (Chivor) reflect the challenges of operating in the highly competitive and largely hydro-based Colombian electricity system as well as the company's relatively volatile cash flow generation. These weaknesses are partly offset by the company's sizable portfolio of short- and medium-term power sales contracts (42% of revenues in fiscal 2005), mainly with local electric distribution companies at a fixed price in Colombian pesos and indexed by local inflation. In addition, Chivor benefits from low variable power generation cost, a relatively large dam, and favorable hydrology within its region. Chivor generates about 4,000 gigawatt-hours (GWh) per year, and has short-and medium-term sales contracts (of up to three years) for about 2,000 GWh...
Companies mentioned in this report are:
- AES CHIVOR & CIA S.C.A. E.S.P.
- The AES Corp.
- AES Gener S.A.
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