Fitch rates AES El Salvador Trust notes BB

Fitch Ratings said it expects to assign a BB rating to AES El Salvador Trust II's $310 million debt issuance, along with a foreign- and local-currency issuer default ratings of BB.

The outlook is stable.

The proceeds will be used to refinance all AES El Salvador Trust outstanding debt, Fitch said.

AES El Salvador Trust II is a special-purpose vehicle located in Panama that was created to issue $310 million of notes on behalf of AES El Salvador Group, the agency said.

The ratings are based on the combined credit quality of AES Corp.'s operating assets in El Salvador, including Compania de Alumbrado Electrico de San Salvador, Empresa Electrica de Oriente, AES Clesa y Cia and Distribuidora Electrica de Usulutan. These operating companies will guarantee, on a joint and several basis, AES El Salvador's proposed debt issuance, Fitch said.

The ratings are based on the combined credit strength of the operating assets that guarantee its debt, the agency said.

The ratings also consider the group's relatively large size compared to the market, low business risk profile and predictable cash flow generation, Fitch said.

The ratings also reflect its high exposure to government intervention risk and the weakening macroeconomic conditions in El Salvador, the agency said.

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