Moody’s rates Gener bonds Baa3

Moody's Investors Service said it assigned a Baa3 rating to AES Gener SA's proposed $450 million 10-year senior unsecured yankee bonds and affirmed the Baa3 senior unsecured rating and Ba2 junior subordinated rating.

The outlook is stable.

Gener will largely use the net proceeds to repay group's existing debt; that is the $307.5 million balance outstanding under its subsidiary Electrica Ventanas' credit facility that is scheduled to expire in 2022 as well as to purchase the $102.2 million outstanding under Gener's 8% series Q due in 2019.

Moody’s said the action acknowledges Gener's recent several liability management initiatives to enhance the group's access to its subsidiaries cash flows and reduce interest expenses. To that end, management is using proceeds raised in connection with Gener's debt issuances to repay some of the debt outstanding at its subsidiaries. These include the current repayment of Electrica Ventana's credit facility as well as the repayment of AES Chivor's $170 million Regulation 144(A) notes completed at the end of last year.

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