...Balanced Contractual Position: Colbun S.A.'s (Colbun) ratings incorporate a commercial strategy based on contracts with financially strong power distribution companies and industrial counterparties with a weighted average life of approximately 10 years. These contracts have adequate indexation mechanisms closely matching the company's generation mix and largely mitigate Colbun's exposure to fuel price volatility. Based on normal to dry hydrology conditions, contract requirements are balanced, with approximately 12,000 gigawatt hours (GWh) per year. Favorable Natural Gas Contracts: Under a dry hydrology scenario, Colbun's contracted volume could be met by the company's natural gas units or by purchases on the spot market, with a negative effect on margins. Positively, the company extended temporary natural gas contracts for thermal units with MetroGas S.A. and Enap Refinerias S.A. until 2019. Fitch Ratings views positively the 20-year contract with GNL Chile S.A. securing regasification...
