Fitch affirms AES Dominicana

Fitch Ratings said it affirmed AES Andres Dominicana SPV's (AES Dominicana) foreign currency issuer default rating at B, with a stable outlook.

Fitch said AES Dominicana's ratings reflect the electricity sector's high dependency on transfers from the central government to service its financial obligations, a condition that links the credit quality of the distribution companies (EDEs) and generation companies in the country to that of the sovereign.

Low collections from end-users and high electricity losses have undermined distribution companies' cash generation capacity, exacerbating these companies' dependence on public funds to cover the gap produced by insufficient payments received from distribution companies, the agency said.

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