S&P ups Edelnor

Standard & Poor's said it raised the ratings on Empresa Eléctrica del Norte Grande SA (Edelnor) to BB- from B+ due to the company's improved financial risk profile, with higher debt-service coverage ratios and $66 million cash reserves as of Sept. 30.

The outlook is positive, reflecting expected stable cash flow generation the next two years partly as a result of its increased medium- and long-term power sale contracts at relatively high prices, the agency said.

Ratings mainly reflect its highly volatile cash flow generation and market environment in which the company operates, S&P said.

These weaknesses are partly offset by Edelnor's diversified generation base, ownership of transmission assets and its 21% equity stake in the Gasoducto Norandino pipeline, the agency said.

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