Fitch upgrades Enel, view to stable

Fitch Ratings said it upgraded Enel Generacion Chile SA’s long-term foreign and local currency issuer default ratings to A- from BBB+ and long-term national scale rating to AA+(cl) from AA(cl). Fitch revised the outlook to stable from positive.

The upgrade of Enel Generacion reflects its strong track record of solid capital structure, with gross leverage measured as total debt/EBITDA consistently below 2x combined with its improved contractual position. Fitch said the ratings also reflect Enel Generacion’s robust business position after completing its reorganization process, consolidation of the company’s leadership position in the Chilean electricity market, and better alignment of shareholders’ interests, as Enel Chile SA increased its stake in Enel Generacion Chile to 93.55% from about 60%.

The stable outlook is driven by Enel Generacion’s adequate liquidity profile and the expectation credit metrics will be consistently below 2x and FFO fixed-charge coverage above 10x.

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