...Fitch Ratings affirmed the Long-Term, Local and Foreign Currency Issuer Default Ratings (IDRs) of AES Panama, S.R.L. (AESP) at `BBB¡' on June 12, 2019. Fitch also affirmed the National Scale Rating at `AA+(pan)'. The Outlooks were revised to Stable from Positive. The ratings reflect AESP's solid credit metrics, strong market position and efforts to manage hydrology risk with its recontracting strategy, underpinned by Panama's evolving electricity matrix, designed to mitigate spot-price volatility. Fitch expects the company's 2019 gross leverage to rise to 3.3x due to anticipated challenging hydrology before returning to below 3.0x over the medium term, provided that conditions normalize. The Outlook revision to Stable reflects the company's continued vulnerability to hydrology risk, as demonstrated by its performance in 2019....
