Fitch cuts Guacolda Energia

Fitch Ratings said it downgraded Guacolda Energia's long-term foreign- and local-currency issuer default ratings to B from BB-. The outlook was revised to stable from negative.

Fitch also downgraded Guacolda Energia's senior unsecured notes due 2025 to B+/RR3 from BB-.

“Guacolda's ratings downgrade reflects its weaker contractual position over the rated horizon resulting in higher leverage, exposure to spot sales; Fitch estimates spot sales as a percentage of total net generation will represent 35% in 2020 and increase to nearly 66% from 2022 through 2026,” Fitch said in a news release.

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