S&P gives Hidroeléctrica Piedra, bonds B

Standard & Poor's said it assigned a B corporate credit rating to Hidroeléctrica Piedra del Aguila SA as well as a B rating to the upcoming 10-year fixed-rate bonds for up to $200 million, due in four equal installments, beginning in 2014.

The outlook is stable.

According to S&P, the ratings reflect the relatively high political and regulatory risk in Argentina, Hidroeléctrica Piedra's exposure to potential poor hydrology in Argentina's southwest region, which would affect its revenues and cash flow generation, and its currency mismatch between its peso-denominated revenues and U.S. dollar-denominated debt.

However, the agency said that ratings benefit from Hidroeléctrica Piedra's solid competitive position as a low-cost generator in the Argentine market and its good cash flow generation despite low electricity prices of around $25.00 per MWh in Argentina.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.