S&P puts Edenor on developing watch

S&P said its ratings on Empresa Distribuidora Y Comercializadora Norte SA (Edenor), including its CCC- issuer credit and issue-level ratings on the company on CreditWatch with developing implications.

Edenor reported that 73.25% of its $98 million outstanding senior unsecured class 9 notes due October 2022 were tendered and accepted in the exchange offer. Consequently, on May 12, Edenor issued $52.7 million in class I notes due May 2025 and distributed $21.5 million in cash, finalizing the exchange.

Of the total, $26.2 million in notes due October 2022 weren't exchanged. According to the central bank's restrictions, Edenor can access the foreign-exchange market for debt repayment for about $18 million, leaving the company still exposed to refinancing risk, the agency said.

“The CreditWatch placement reflects the uncertainty over options that Edenor faces, and the potential for us to raise, lower, or affirm the ratings in the next 90 days. The uncertainty relates to the company obtaining further permission from the regulator to access the FX market and/or its ability to get the necessary financing in the capital markets to repay the 2022 notes in a short period of time,” S&P said in a press release.

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