Moody's cuts Gener outlook to negative

Moody's Investors Service said it changed the outlook for AES Gener SA to negative from stable and affirmed Gener's existing Baa3 senior unsecured rating.

"The change in Gener's outlook reflects a weaker-than-expected financial profile" said Moody's vice president Scott Solomon.

"Gener's near-term financial profile is expected to remain weak as the company manages through expected further gas curtailments and a significant construction program."

An increase in natural gas curtailments and, to a lesser extent, weak hydrology conditions negatively impacted Gener's consolidated operating margins and cash flow during 2007 resulting in weaker-than-expected financial metrics, Moody's noted.

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