Fitch rates Edesa notes B-

Fitch Ratings said it assigned foreign- and local-currency issuer default ratings of B- to Empresa Distribuidora de Electricidad de Salta (Edesa). The agency also said it assigned a B- international scale rating and recovery rating of RR4 on its $33 million proposed debt issuance. The new notes also were assigned a long-term national scale rating of BBB+(arg). The purpose of the transaction is to refinance the outstanding amount of $45.3 million of the existing notes due in December 2010. The proposed issuance will be guaranteed by Edesa's parent company Empresa Distribuidora Regional SA (Emdersa).

The outlook is stable.

The ratings reflect the expected stability of Emdersa's consolidated revenues, the maintenance of conservative leverage and solid credit metrics, Fitch said.

The ratings are tempered by exchange-rate volatility and the inherent regulatory risk, as there is uncertainty about the timing and amount of future tariff adjustments for the operating companies, the agency said.

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