NEW YORK--(BUSINESS WIRE)--Fitch Ratings has issued a presale report for Planta de Reserva Fria de Geracion de Eten S.A.'s (Eten) $145.3 million series 2013-1 senior secured notes. Fitch issued a press release for the notes on Nov. 18, 2013, and expects to assign a 'BBB-' rating. The Rating Outlook is Stable.
Eten's revenues to support debt repayment are derived from a concession from the Peruvian government to build and operate a 223 MW thermal power plant in the Chiclayo province of Northwestern Peru. The plant is designated as a 'Cold Reserve' back-up generator with a marginal cost approximately 10 times higher than Peru's average 2012 marginal cost. As such, the plant is expected to generate electricity only in cases of severe drought or in cases of emergency such as earthquake or other natural disaster resulting in downed transmission lines.
The power plant is a simple cycle plant that will consist of a single GE 7FA 5 series turbine and will be capable to begin generating electricity without access to grid electricity via an auxiliary generator.
The project sponsors are Cobra and Empresa de Mantenimiento, Construccion y Electricidad, S.A. de C.V. (EMCE; not rated). Cobra is a subsidiary of the Spanish construction group Grupo ACS (not rated), while EMCE forms a part of the energy division within Grupo Terra (not rated), a Central American power generator and developer.
Link to Fitch Ratings' Report: Planta de Reserva Fria de Generacion de Eten S.A.
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=725015
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Rating Criteria for Thermal Power Projects' (June 2013)
--'Rating Criteria for Infrastructure and Project Finance' (July 2012).
Applicable Criteria and Related Research:
Rating Criteria for Thermal Power Projects
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=710786
Rating Criteria for Infrastructure and Project Finance
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=682867
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