S&P upgrades Itabo, rates notes BB-

S&P said it upgraded the corporate credit rating on Empresa Generadora de Electricidad Itabo SA (Itabo) to BB- from B+.

The outlook remains stable.

The agency also said it assigned a BB- rating to the proposed up-to-$100 million senior unsecured notes.

The upgrade reflects a view of the company’s resilient operational track record in terms of availability and energy production, S&P said, and the maintenance of operating cost efficiency.

As a result, the agency said it reassessed Itabo’s business risk profile to weak from vulnerable.

The stable outlook reflects an expectation that the company will maintain an EBITDA margin of about 30% and a debt-to-EBITDA ratio of less than 1.5x in the next two years, S&P said.

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