AES Corp $250M Senior Unsecured Debt Rated BB+ by Fitch IBCA.NEW YORK--(BUSINESS WIRE)--Nov. 9, 1999-- Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals assigns its `BB+' rating to The AES Corp.'s (AES) expected $250 million issuance of senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. maturing in 2009. The new senior debt will rank equally with all other AES senior unsecured indebtedness and the company's existing $600 million corporate revolving bank loan. Proceeds will be used to pay down certain existing indebtedness. The ratings of all other outstanding AES debt, listed below, are affirmed. The ratings reflect continued growth and diversification of cash flow sources through the worldwide development and acquisition of electric generation and distribution facilities, the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operating record of existing facilities and the company's willingness to use equity to support its growth. The ratings also reflect the negative cash flow impact of the currency devaluation Currency devaluation A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold. in Brazil and portfolio exposure to Brazil and other emerging market economies. AES corporate debt relies on cash flows obtained primarily from dividends upstreamed from the company's equity ownership in leveraged electricity generating facilities and distribution subsidiaries. Therefore, the AES corporate debt is structurally subordinated to nearly $5.4 billion of non-recourse project and operating company operating company A business that engages in transactions with outsiders. debt. AES ratings affirmed are: -- $600 million corporate revolving bank loan at `BB+', -- $750 million senior unsecured notes at `BB+', -- $1.1 billion in senior subordinated notes at `BB', -- $150 million convertible junior subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before at `B+', -- $550 million in term convertible securities, issued by AES Trusts I and II at `B+', and -- $500 million in trust convertible preferred securities issued by AES Trust III at `B+'. |
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