Fitch affirms AES Panama

Fitch Ratings said it affirmed AES Panama, SA foreign and local currency issuer default ratings at BBB-, adding that this rating action applies to $300 million in senior unsecured notes due December 2016.

The outlook is stable.

Fitch noted that AES Panama's ratings are based on the company's strong portfolio of assets, competitive dispatch position, solid multiple power purchase agreements, adequate financial profile, healthy projected debt service coverage under various stress scenarios and the absence of foreign-exchange risk.

The ratings also incorporate potential weaknesses, including exposure to hydrology, commodity price risks, regulatory considerations and potential for long-term competitive price pressures, the agency added.

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