Moody's: AES Gener on positive review

Moody's Investors Service said it placed the ratings of AES Gener, SA and its wholly-owned subsidiary Chivor, SA ESP under review for possible upgrade.

Ratings placed under review include Gener's Ba3 senior unsecured debt, Chivor's B1 senior secured debt and Chivor's B1 corporate family rating.

The action reflects continued progress by AES Gener in reducing consolidated leverage and improving liquidity, an expected incremental improvement in cash flow resulting from passage of the Short Law 2 in Chile and stronger electricity prices and demand growth in Colombia, Moody's said.

The action also reflects AES Gener's ability to successfully manage and mitigate the operational and financial stress caused by the curtailment of gas imports from Argentina, Moody's said.

Moody's noted that Chivor's financial performance has exceeded expectations due to improved cash flow resulting from higher than expected electricity prices and demand and improved plant management.

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