Fitch upgrades AES Panama

Fitch Ratings said it upgraded AES Panama SRL's long-term foreign- and local-currency issuer default ratings to BBB- from BB+.

The outlook is stable.

The rating action affects $375 million of notes due 2022.

Fitch also said it upgraded AES Panama's national scale rating to AA+(pan) from AA-(pan).

The upgrade of the national scale rating also affects the notes due 2022, the agency said.

The upgrades reflect AES Panama's strategic changes to its generation portfolio and to its re-contracting strategy, underpinned by Panama's evolving electricity matrix designed to mitigate spot price volatility, Fitch said.

AES Panama's ratings reflect the material credit metrics' improvement resulting from better hydrology conditions, adequate contractual position and stabilized spot prices, the agency said.

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