Fitch affirms Energuate Trust

Fitch Ratings said it affirmed Energuate Trust's long-term foreign and local currency issuer default ratings at BB.

The action affects $330 million in total of notes outstanding due 2027.

The outlook is stable.

“Energuate's ratings consider the combined operations of Distribuidora de Electricidad del Oriente SA (Deorsa) and Distribuidora de Electricidad del Occidente SA (Deocsa), and primarily reflect its close linkage to the Guatemalan government vis-a-vis the receipt of subsidy payments,” the agency said in a news release.

“While the company's credit profile is supported by its natural monopoly in its concession area, its exposure to socio-economically unstable regions within the country creates a challenging environment for maximizing profitability and operational efficiency.”

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