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Summary: Hidroelectrica Piedra del Aguila S.A. Jan 11
Standard & Poors, Jan 2011
Abstract
Standard & Poor's Ratings Services' ratings on Argentine hydroelectric power generator Hidroelectrica Piedra del Aguila (HPDA) reflect the high political and regulatory risk in Argentina, as shown in a lack of tariff adjustments. The ratings also reflect the company's exposure to potential poor hydrology in the country's southwest, and a currency mismatch between the firm's Argentine peso-denominated revenues and its dollar-denominated debt. However, despite still relatively low electricity prices, the ratings benefit from HPDA's solid competitive position as a low-cost generator and its good cash flow generation, adjusted for the noncollection of a significant portion of power sales on the spot market. As a result of the current regulation, HPDA is collecting only a small portion of its sales made...
Companies mentioned in this report are: Hidroelectrica Piedra del Aguila S.A.,Merrill Lynch, Pierce, Fenner & Smith Inc.
Action: Review
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.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
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