Moody's: Edelnor outlook positive

Moody's Investors Service said it changed the outlook of Empresa Electrica del Norte Grande SA (Edelnor) to positive from stable.

The outlook change is primarily driven by Edelnor's continued strong performance over the last several quarters as a result of an improved business environment for generators in northern Chile coupled with a commercial strategy executed by its management team that has resulted in a significant increase in contracted dispatch capacity and cash generation, Moody's said. It also considered Edelnor's prepayment of its restrictive loan agreement and subsequent reduced leverage and increased financial flexibility.

The agency said Edelnor's Ba3 issuer rating reflects the company's relatively small size, geographical concentration in only one economic region in Chile, significant exposure to market volatility in the mining sector and commodity exposure to imported coal as its main source of fuel.

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