Fitch affirms NamPower

Fitch Ratings said it affirmed Namibia Power Corp. (Pty) Ltd.'s long-term foreign-currency issuer default rating at BBB-, short-term issuer default rating at F3, national long-term rating at A-(zaf) and national short-term rating at F2(zaf).

The outlook is stable.

The agency said the ratings reflect NamPower's position as a fully government-owned monopoly electricity generation and transmission company in Namibia, with installed generation capacity of 393 megawatts, split between hydro (63%) and thermal (37%) technologies.

To address key challenges - including supply shortages and reliance on imported electricity, which accounted for 51% of electricity usage in 2007 -NamPower is rolling out a 9 billion Namibian dollar investment program aimed at increasing generation capacity and expanding and upgrading the transmission network to circumvent existing bottlenecks. Fitch said that implementation of the investment program will put pressure on the company's financial profile and diminish NamPower's liquidity.

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