S&P cuts Enel Chile

S&P said it downgraded Enel Chile SA and its core subsidiary Enel Generacion Chile SA to BBB from BBB+.

“Enel Chile's 2021 adjusted EBITDA will likely be $800 million, in comparison with our previous expectations of $1.1 billion. This is primarily due to lower hydroelectric generation as a result of drought. This would result in lower energy generation, but also at higher prices, resulting in a less efficient generation mix,” the agency said in a press release.

Adverse weather conditions could persist in the next 18-24 months during which Enel will invest to make its generation matrix more flexible, with the increasing share of wind and solar assets, but with hydro assets accounting for about 40% of its installed capacity, S&P said.

The outlook is stable.

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