S&P rates CA La Electricidad notes BB-

Standard & Poor's said it assigned a BB- rating to CA La Electricidad De Caracas' (EDC) $650 million senior unsecured notes due 2018 and a BB- local-currency corporate credit rating.

The agency affirmed the BB- foreign-currency corporate credit rating and BB- senior unsecured debt rating on Electricidad de Caracas Finance BV's notes due 2014.

The outlook is stable.

Proceeds will be used to fund EDC Finance's repurchase of 94.94% of its $260 million notes due 2014.

The rating reflects the company's operating and financial prospects under Petroleos de Venezuela SA's (BB-/stable) ownership, as the ratings on EDC are aligned with those on PDVSA.

Ratings also consider the uncertainties regarding the financial and operating effects on EDC after Corporacion Electrica Nacional is established in 2010, which could lead to a more aggressive financial profile and a weaker business profile, according to the agency.

As of December, the issuer had a total debt-to-EBITDA ratio of 1 times.

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