AES Corp. (The) Aug 02
- ID: 1835308
- August 2002
- Standard & Poors
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)
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