S&P lifts AES Gener

Standard & Poor's said it raised the ratings on AES Gener SA by one notch to BBB- from BB+, reflecting improvement in the company's financial risk profile.

The outlook is stable.

AES Gener's financial risk profile continued improving during 2005, the agency said, noting that better cash flow generation, mainly thanks to the higher electricity prices in Chile after the passage of the Short Law II in May 2005, together with a smoother and manageable debt maturity profile after the refinancing of about $220 million of its consolidated financial debt during the year, resulted in stronger debt service coverage ratios.

The ratings on AES Gener mainly reflect the company's good market position as a reliable power provider in Chile, revenue stability deriving from large long-term power sales contracts with solid offtakers such as Chilectra SA, Chilquinta Energía SA and Minera Escondida Ltda. (BBB+/stable), S&P said.

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