S&P places AES corporate ratings on creditwatch

Credit ratings agency Standard and Poor's ( S&P) has put the B corporate credit ratings in local and foreign currencies of local generator AES Gener on creditwatch with positive implications, S&P said in a statement. The reclassification follows the announcement by the company of a financial strengthening plan which includes a US$300mn capital increase to reduce debt, and the refinancing of the rest of its debentures, the statement said. It is expected that the funds and the issue of a new US$400mn bond will be used to buy back company bonds already in circulation. The plan also envisages refinancing the debt of Argentine subsidiaries Termoandes and Interandes. "The plan should significantly improve AES Gener's capital structure and liquidity level, and extend the average life of its financial debt, thereby reducing refinancing risk," according to S&P analyst Sergio Fuentes.