...Deteriorating Credit Metrics: AES Panama S.R.L.'s (AES Panama) credit metrics have weakened as a result of purchases of energy in the spot market during 2014 and 2013 to fulfill obligations derived from its power purchase agreements (PPAs). Fitch Ratings expects the company's cash flows will stabilize in the short to medium term as a result of the company's margin recovery, due to low spot prices and the start of commercial operation of the power barge since second-quarter 2015. Elevated Exposure to Hydrological Risk: AES Panama maintains PPAs that represent approximately 92% of the combined firm capacities of AES Panama and AES Changuinola S.A. (AES Changuinola) for 2015, compared with 93% during 2014 and 2013 and 90% through 2016¡2018. This elevated level exposes AES Panama to changes in hydrological conditions and spot market prices, such as those observed during 2014 and 2013. The acquisition of the barge is part of the actions being taken by the company to reduce its exposure to hydrology...
