Fitch assigns EGE Haina, notes BB-

Fitch Ratings said it assigned foreign- and local-currency issuer default ratings of BB- to Empresa Generadora de Electricidad Haina, SA with a negative outlook. Fitch also gave a BB- rating to EGE Haina's $300 million of senior unsecured notes due 2031.

“EGE Haina's ratings reflect the high risk of the Dominican Republic electricity sector, which is characterized by high energy losses, low level of collections and important subsidies. The ratings also reflect the greater visibility of its revenue and lower exposure to the spot market, the size and diversification of its generation asset base, and the appropriate leverage,” Fitch said in a press release.

The company expects to use the proceeds to refinance debt and for general corporate purposes.

The outlook reflects the link of the credit quality of the Dominican Republic electric sector to the sovereign rating given the dependency of state-owned distribution companies from government transfers, the agency explained.

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