S&P rates Duke Paranapanema bonds BB

Standard & Poor's said it assigned a BB corporate credit rating to Duke Energy International, Geração Paranapanema SA, a Brazil National Scale rating of brAA- and brAA- rating to its R$300 million of debentures due 2013 and 2015.

The outlook is stable.

The rating reflects the company's historically stable financial profile, with moderate debt, stable cash generation and track-record of positive free operating cash flow, S&P noted.

These positive factors are tempered by uncertainties regarding Duke Paranapanema's capacity growth to comply with a privatization contract clause, significant competition, some submarket risk and exposure to the Brazilian electric sector's regulatory framework, the agency said.

Total gross debt-to-EBITDA ratio was of 2.49 times in 2007.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.