S&P lowers Isagen to stable

Standard & Poor's said it affirmed the BBB- corporate credit ratings on Isagen, SA ESP and revised its outlook to stable from positive.

The ratings reflect the moderately high likelihood that the government of Colombia would provide timely and sufficient extraordinary support to Isagen in the event of financial distress, S&P said.

1 The ratings also consider Isagen's important role in national energy policy as Colombia's third-largest power-generation company, the agency said.

The government is expected to maintain its majority share in the company at least for the next three years, S&P said.

The company's exposure to hydrological conditions and aggressive expansion strategy limit the rating, the agency said.

Those negative factors are partly offset by the ownership of a thermal plant that represents about 15% of its total installed capacity, S&P said.

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