Fitch: AES more flexible

Fitch Ratings said it views the AES Corp.'s recent announcement of two transactions involving the China sovereign wealth fund China Investment Corp., Inc. as instrumental to accelerating investment rather than improving credit.

According to the agency, the transactions consist of a binding stock purchase agreement for China Investment to buy $1.58 billion in new AES equity and a letter of intent to sell a 35% stake in AES' wind generation business for $571 million.

The substantial new equity commitments permit AES to adopt an accelerated growth strategy and also support Fitch's current B+ issuer default rating for the company, the agency noted.

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