S&P rates Enel Chile notes BBB+

S&P said it affirmed the BBB+ corporate credit rating on Enel Chile SA, along with the BBB+ corporate credit rating on Enel Generacion Chile SA and BBB+ senior unsecured issue-level credit ratings.

The agency also said it assigned a BBB+ issue credit rating to Enel Chile's proposed long-term senior unsecured notes for up to $1 billion.

The proceeds will be used by Enel Chile from the notes to refinance outstanding borrowings and for general corporate purposes.

The ratings reflect a view that the issuer's leading position in the distribution and generation of electricity in Chile should allow it to generate sufficient EBITDA to reduce its debt leverage in 2018 to 2019, S&P said.

Enel Chile's debt leverage increased substantially as a result of the incorporation of Enel Green Power Latin America's assets in Chile, which brings all of Enel SpA's Chilean operations under one entity, the agency said.

This transaction will improve Enel Chile's position in the electric sector in Chile, S&P said.

However, it does not merit a change in the group's business risk profile, the agency said.

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