Fitch affirms EGE Haina

Fitch Ratings said it affirmed Empresa Generadora de Electricidad Haina, SA's international foreign- and local-currency issuer default ratings at B-, $175 million senior unsecured notes due 2017 at B-/RR4, national long-term issuer default rating at BBB(dom) and $30 million local senior unsecured issuance program at BBB(dom).

The outlook is stable.

The agency said EGE Haina's ratings reflect the company's dependence on government subsidies for its financial sustainability. Notwithstanding recent improvements in the timeliness of government payments, the risks of operating electric generation assets in the Dominican Republic remain high and reflect the distribution companies' low collections and high losses, Fitch said, adding that these risks translate into high cash flow volatility for all generation companies.

The agency said EGE Haina's credit metrics are currently adequate for the rating category and had been weakening during the past year-and-a-half due to the fall of hydrocarbon prices. For the last 12 months ended March 31, the total debt-to-EBITDA ratio was 3.5 times.

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