S&P affirms EGE Haina

Standard & Poor's said it affirmed its B long-term corporate credit rating on Empresa Generadora de Electricidad Haina SA (EGE Haina) and its B rating on special-purpose financing entity Haina Finance SA's $175 million senior notes due 2017.

The outlook is stable.

The B rating reflects the challenges of operating in the Dominican Republic's electric industry, which is characterized by an inefficient and highly subsidized distribution sector whose long-term operational and financial sustainability is highly uncertain, the agency noted.

S&P said that the rating also incorporates EGE Haina's high off-taker risk, evidenced by Dominican distribution companies' failure to fully meet their payment obligations to the generators during the country's latest economic crisis.

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