...Strong Power Purchase Agreements: Empresa Electrica Angamos S.A.'s ratings are supported by the strength of the company's power purchase agreements (PPA), which have a weighted average, investment-grade credit quality. Angamos is fully contracted with PPAs. The tenure for the PPAs averages 14 years with stable, fixed monthly capacity charge structures. The PPAs allow for the full pass-through of variable costs, including fuel and nonfuel costs, and certain changes in laws. Stable FCF: Fitch Ratings projects annual capex of USD9 million with FCF of around USD80 million¡USD90 million per year in the near term for Angamos. Intercompany loans upstreamed to AES Gener S.A. (BBB¡/Stable) should increase in the same amount. As the company's PPAs are designed to generate stable payments, Angamos generated positive FCF since the first full year of operations in 2012. During the last three years, the company's capex declined to maintenance levels of USD4 million¡USD15 million. Stable Financial Results:...
