Fitch affirms AES Dominicana

Fitch Ratings said it affirmed AES Dominicana Energia Finance, SA's international foreign-currency issuer default ratings at B-. The action also applies to $160 million of notes due 2015, with recovery rating affirmed at RR4.

The outlook is stable.

Ratings consider the risks of operating electric generation assets in the Dominican Republic, where distribution companies have historically reported poor operating performance, characterized by very high losses and low collections, the agency noted.

Ratings also consider the electricity sector's dependence on government subsidies, Fitch said.

The company's credit metrics are considered very strong for the rating category and have recently improved significantly, the agency added.

The company has a total debt-to-EBITDA ratio of about 2.6 times.

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