S&P rates Empresa Generadora de Electricidad Haina B

Standard & Poor's said it assigned its B corporate credit rating to Empresa Generadora de Electricidad Haina SA and its B rating to special-purpose financing entity Haina Finance SA's $150 million senior notes due 2017.

The outlook is stable.

Haina Finance will issue the bonds and on-lend the funds to Empresa Generadora de Electricidad Haina to repay outstanding debt obligations and for corporate purposes, the agency said.

S&P noted that the ratings on Empresa Generadora de Electricidad Haina reflect the challenges of operating in the Dominican Republic's electric sector, which is characterized by a highly subsidized distribution sector that is offset by the contractual nature of the revenue stream and the Dominican government's continued support of the electricity sector.

Challenges are partially offset by a diversified portfolio of dollar-denominated long-term energy sales contracts that limit the company's exposure to spot-market volatility, as well as the efficiency of the company's plants, which have an availability of 95%, the agency added.

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