...Credit Profile Linked to Kallpa: Kallpa Generacion S.A.'s (Kallpa) is the most important subsidiary of Inkia Energy Limited (Inkia), representing 59% of Inkia's consolidated EBITDA. Kallpa's credit quality is supported by its competitive cost structure and contracted position. Most of its firm energy is contracted under long-term, fixed-payment purchase agreements (PPAs) with fuel cost pass-through clauses supporting cash flow stability. Historically, Inkia's expansion plans for Kallpa have been aggressive, with continued investments to increase the plant's installed capacity, including the acquisition of Las Flores in 2014. High Leverage: Inkia's stand-alone financial profile has historically been weak for the rating category. However, Fitch Ratings expects consolidated leverage to return to approximately 3.5x4.0x by 2017, absent additional investments that could perpetuate the company's high consolidated leverage. As of June 30, 2015, leverage, measured as the LTM of consolidated EBITDA/total...
