S&P lowers Corpoelec stand-alone rating

Standard & Poor’s said it affirmed the CCC corporate credit rating on Corporacion Electrica Nacional SA (Corpoelec).

The agency said it revised downward the company’s stand-alone credit profile to CCC from B-.

The outlook remains negative.

The ratings continue to reflect a view that there is an almost certain likelihood that Venezuela will provide timely and sufficient extraordinary support to the company in the event of financial distress, S&P said.

The downgrade also reflects an opinion that the company faces significant difficulties in meeting its financial commitments due to its very weak financial condition, the agency added.

The ratings also consider the company’s integral link with the government given its full ownership of Corpoelec and its special public status viewed as an extension of the government, the agency said.

The negative outlook on Corpoelec reflects that the outlook on Venezuela, S&P said.

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