Fitch affirms Guacolda ratings

Credit ratings agency Fitch has affirmed the BBB rating of Chilean thermo generator Guacolda's US$150mn senior secured loan participation certificates due April 30, 2013 and its A+ national scale rating, Fitch said in statement Wednesday. The outlook remains stable. The issuance rating reflects Guacolda's competitive dispatch position supported by the efficiency and geographical location of its units, sound operating and commercial strategies, long-term supply contracts, growing electricity demand in the region and the company's acceptable projected debt-service coverage under various stress scenarios, the statement read. The rating also incorporates potential weaknesses, including: exposure to fuel price increases; expiration of some of its supply contracts; possible regulatory changes; exposure to regulated energy prices; and concerns related to the outcome of the transmission rate arbitration process. A decision on the arbitration process, with transmission company Transelec, is expected by year-end, but at this point is not expected initially to impact credit quality, Fitch said. To read Fitch's full report on Guacolda, see http://www.bnamericas.com/rc_search_detail.xsql?id_documento=42100&Tx_idioma=I