Fitch pares ENSA

Fitch Ratings said it downgraded Elektra Noreste SA's long-term local- and foreign-currency issuer default ratings and notes due 2036 to BBB- from BBB. The agency also affirmed ENSA's long-term national scale rating at AAA(pan).

“The downgrade reflects ENSA's exposure to Panama's sovereign rating (BBB-/negative outlook) given that the company is a regulated utility with cash flows generated entirely domestically, and include direct government subsidies that equate to 25% of ongoing EBITDA. ENSA is thus susceptible to adverse changes to Panama's regulatory and operating environments,” Fitch said in a press release.

The outlook is stable.

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