Fitch affirms Electricidad de Caracas

Fitch Ratings said it affirmed the international foreign currency and local currency ratings of C.A. La Electricidad de Caracas (EDC) at B- and B, respectively. The foreign currency rating of the company is constrained by the Venezuelan sovereign rating of B-.

All ratings maintain a stable outlook.

Fitch said the company's credit quality is supported by its position as the largest private electric utility company in Venezuela and as a low-cost, vertically integrated company. These factors place the company in a relatively strong competitive position to operate in the evolving Venezuelan electricity market. Electricidad de Caracas' long history as a profitable, reliable private entity helps provide comfort to the company's and management's ability and willingness to meet its financial obligations in the event of material adverse events.

The ratings also incorporate the many adverse economic and political challenges that have pressured the credit quality of the company and Venezuelan sovereign alike. Positively, the company has effectively managed several issues despite facing severe economic and political volatility during 2003 and 2004.

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