...Strong PPAs: Empresa Electrica Angamos S.A. (Angamos) is fully contracted and its power purchase agreements (PPAs) have an average 15-year tenure with a stable, fixed monthly capacity charge structure. The PPAs allow for the pass-through of variable costs including fuel and nonfuel costs and certain changes in laws. Furthermore, the contracts have comprehensive force majeure terms that add to cash flow predictability, and Angamos' counterparties all possess investment-grade credit quality. Stable FCF Generation: As the company's PPAs were designed to generate fixed, stable payments, Angamos has been generating positive FCF since its first full year of operations in 2012. Fitch Ratings is projecting the company to average capex of USD7 million per year, stable 38%¡40% EBITDA margins through 2017 and long-term margins settling in the low-40% range. Incorporating dividend payments in 2014¡2017, FCF should be negative with a return to positive FCF once the final PPA begins in 2018. Strong Parent...
