Fitch to give AES Gener notes BB

Fitch Ratings said it expects to assign a long-term rating of BB to AES Gener SA's proposed $450 million junior subordinated (hybrid) notes issuance due 2073.

AES Gener expects to use the proceeds from the issuance to finance its equity contribution for the Alto Maipo and Cochrane projects as well as to repay upcoming maturities and for general corporate purposes.

The hybrid notes will receive a 50% equity credit given that interest payments on the notes are deferrable at the company's discretion and are compounded at the applicable interest on the notes. Also, the notes' subordinated ranking provides loss absorption for more senior debt of the company.

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