Fitch affirms Guacolda's loan BBB

Fitch Ratings said it has affirmed the BBB rating of Empresa Electrica Guacolda's $150 million senior secured loan participation certificates due April 30, 2013 and the A+(chl) national scale rating.

The outlook for all ratings remains stable.

The ratings reflect Guacolda's competitive dispatch position supported by the efficiency and geographical location of its units, sound operating and commercial strategies, long-term supply contracts, growing electricity demand in the region and acceptable projected debt-service coverage ratios under various stress scenarios, Fitch said.

The rating also incorporates potential weaknesses, including exposure to fuel price volatility combined with power purchase agreements at a fixed price, Fitch said.

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