The AES Corp.'s 'BB-' corporate credit rating reflects following risks: A decline in equity value and an increase in credit spreads have made it extremely difficult for AES to source new funds, and AES' ability to maintain and grow its business is dependent on its ability to raise funds for new projects, acquisitions, and refinancings both at the project and corporate levels. AES has a history of aggressive development and acquisition strategies, investing more than half of its cash equity on projects and companies in countries either unrated or rated non-investment grade by Standard & Poor's, where considerable regulatory and operating uncertainties exist. Standard & Poor's estimates that about 44% of AES' projected cash flows from 2002 through 2006 are...
Companies mentioned in this report are: AES Corp. (The)
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