Fitch shifts Etesa outlook to stable

Fitch Ratings said it revised the outlook to stable from negative and affirmed Empresa de Transmision Electrica, SA's (Etesa) BBB- long-term foreign and local currency issuer default ratings. The agency also affirmed Etesa's international long-term senior unsecured rating at BBB- and national long-term rating at AAA(pan) with a stable outlook and national long-term senior unsecured rating at AAA(pan).

“The ratings reflect Etesa's strong linkage with Panama's sovereign rating (BBB-/stable), due to the government's 100% ownership in the company and history of financial support. Etesa's socio-political implication of default is moderate, given the low likelihood of service interruptions that could arise from financial distress at the company. Etesa's financial implication of default for Panama's government is strong due to the company's strategic importance to the country,” Fitch said in a press release.

The outlook reflects Panama’s stable outlook.

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