S&P affirms AES Dominicana

Standard & Poor's said it affirmed its B- ratings on AES Dominicana Energia Finance SA's $160 million senior notes due 2015 and revised its outlook on the notes to positive from stable.

The agency said that the outlook revision reflects improvement in the company's ability to generate cash flow, given its demonstrated ability to execute setoff transactions to manage receivables and recent streamlining of liquid natural gas delivery, coupled with the improving outlook of the Dominican Republic's sovereign rating (B/positive/B).

S&P noted that the ratings on AES Dominicana reflect the challenges of operating in the electric sector in the Dominican Republic, characterized by a highly subsidized distribution sector offset by the contractual nature of the revenue stream and continued support of the electricity sector by the Dominican government.

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