Moody's upgrades Enersis, Endesa Chile

Moody's Investors Service said it upgraded the senior unsecured ratings of Enersis, SA and Empresa Nacional de Electricidad, SA (Endesa Chile) to Baa2 from Baa3. These actions conclude the review for possible upgrade that began in September 2010.

The outlook on both companies is stable.

The upgrade largely reflects each issuer's strong consolidated credit metrics, Moody's said, and an expectation that both companies' future financial performance will continue to remain consistent with the Baa rating.

This is despite an expectation for some degradation in near-term financial performance due to lower margins in certain markets, the agency said.

The upgrade also considers a belief that internal cash flow generation will remain robust and that dividend policy will continue to be conservative, resulting in no substantial increase in leverage, Moody's said.

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