Fitch ends Kallpa observation

Fitch Ratings said it removed Kallpa Generacion SA's long-term foreign- and local-currency issuer default ratings from under criteria observation and affirmed them at BBB-. The rating action also affects $1 billion in aggregate of notes due 2026 and 2027.

“Fitch limits Kallpa's ratings to two notches above parent Nautilus Inkia Holdings SCS (Inkia; BB/stable) given the weak limitations to access Kallpa's cash flow, the absence of minority shareholders or ring-fencing mechanisms that prevent cash leakages, and the moderate overlap of operational and strategic connections. The ratings also reflect stable and predictable cash flows, supported by strong contractual positions, a competitive cost structure and a diversified portfolio of complementary and efficient generation assets,” the agency said in a press release.

The outlook is stable.

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