...Deteriorating Credit Metrics: AES Panama S.A.'s (AESP) credit metrics have weakened as a result of purchases of energy in the spot market to fulfill obligations derived from its power purchase agreements (PPAs). The net effect of these transactions on AESP's operating cash was USD117 million in 2013 and USD123 million in first-half 2014. LTM EBITDA for the period ended in June 30, 2014, declined to negative USD4.2 million from USD77.2 million in 2012. Credit metrics could remain weak over the next two years should hydrology remain low. Weakening Liquidity: The company's liquidity position has been affected in the last two years by weaker FFO due to spot market purchases and the company's continued dividend payment policy (USD29 million in 2013). Cash on hand totaled USD19 million as of June 30, 2014; this compares with short-term debt of USD50 million. The company's financial policy is to maintain a minimum cash balance of USD20 million, and future dividend payments may follow this policy....
