S&P: EDC outlook negative

Standard & Poor's said it revised the outlook on CA La Electricidad De Caracas to negative from stable and affirmed its BB- corporate credit rating. The agency also affirmed the BB- senior unsecured debt rating on the notes of Electricidad de Caracas Finance BV.

The outlook revision mirrors the outlook change on Petróleos de Venezuela SA (BB-/negative) to negative from stable.

"The ratings on EDC are aligned with those on PDVSA to reflect EDC's operating and financial prospects under PDVSA's ownership," S&P analyst Marcela Dueñas said in a statement.

Ratings also consider the uncertain financial and operating effects of the future establishment of Corporación Electrica Nacional, which could lead to a more aggressive financial profile and a weaker business profile, the agency said.

These factors are partially offset by EDC's central role in meeting the government's political and economic objectives, the agency said.

Ratings are also supported by strong operations in its service area, S&P said.

© 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.