Fitch upgrades AES

Fitch Ratings said it upgraded the AES Corp.'s long-term issuer default rating to BB from BB-.

The outlook is positive.

Fitch also said it affirmed Ipalco Enterprises, Inc.'s long-term issuer default rating at BB+ and long-term issuer default rating for Indianapolis Power & Light at BBB-.

The outlooks are positive.

The upgrades reflect the steady improvement in credit metrics and expectations that recourse adjusted debt will continue to improve to mid-4x range by 2018 and less than 4x by 2020, from 5.5x in 2015, Fitch said.

AES invests in a diverse portfolio of regulated electric utilities and power-generating assets with long-term contracts across four continents and 17 countries, the agency said.

Diversification and cash flow will continue to improve due to project completion and new acquisitions, Fitch said.

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