...AES Andres B.V.'s ratings reflect the Dominican Republic electricity sector's high dependency on transfers from the central government to service its financial obligations, which links the credit quality of distribution companies and generation companies to that of the sovereign. Low collections from end users, high electricity losses and subsidies have undermined distribution companies' cash generation capacity, exacerbating generation companies' dependence on public funds to cover the gap from insufficient payments from distribution companies. The ratings also consider the company's solid asset portfolio, strong balance sheet and well-structured purchase power agreements (PPAs). The rating of the USD270 million notes due 2026 considers the combined operating assets of Andres and Dominican Power Partners (DPP) (jointly referred to as AES Dominicana), which are joint obligors of Andres' USD270 million notes. These notes are attached to Empresa Generadora de Electricidad Itabo, S.A.'s USD100...
