Fitch prunes three Panamanian corporates

Fitch Ratings said it downgraded the long-term local- and foreign-currency issuer default ratings to BB+ from BBB- for Empresa de Transmision Electrica SA, Elektra Noreste, SA and AES Panama Generation Holdings Srl.

The downgrades follow Fitch's downgrade of Panama's sovereign IDR to BB+ from BBB- on March 28, the agency said.

“The downgrades reflect Fitch's view of stronger linkages between each company's credit profile and the sovereign rating amid a deteriorating operating environment (OE, assessed at bb+) as well as either full or partial corporate government ownership or the systemic receipt of government subsidies and financial support,” the agency said in a press release.

The outlooks are stable.

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