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Fitch cuts Guacolda
Fitch Ratings said it cut Guacolda Energia SpA's issuer default ratings to CCC+ from B. Fitch also downgraded Guacolda Energia's senior unsecured notes due 2025 to CCC+/RR4 from B+/RR3. The company and security have been placed on rating watch negative.
“Guacolda's ratings downgrade and RWN reflects its shareholders', Capital Advisors, unclear business strategy and refinancing plan for Guacolda's 2025 notes coupled with the issuer's weaker contractual position over the rated horizon, resulting in higher leverage and exposure to spot sales,” Fitch said in a press release.
The agency also noted an uncertain Chilean regulatory regime that may prohibit coal-fired power plants ability to generate electricity that will be sold on the spot market, which raises serious concerns about the issuer's ability and willingness to repay its debt.
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