Fitch to assign Kallpa bonds BBB-

Fitch Ratings said it published the BBB- long-term local- and foreign-currency issuer default ratings of Kallpa Generacion SA and expects to rate Kallpa's proposed international bonds due 2026 BBB-(EXP).

The outlook is stable.

Fitch said the ratings reflect Kallpa's solid operating profile supported by its strong contractual position and competitive cost structure.

The ratings also reflect the company’s dominant market position as Peru's second largest combined cycle generator in terms of installed capacity.

Finally, Kallpa could face pressure from its controlling shareholder, Inkia Energy Ltd. (BB, negative), to increase dividends above those forecasted by Fitch. The company has sufficient liquidity to cushion itself through significant capex needs in the short- to medium-term.

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