...The ratings reflect Luz del Sur S.A.A.'s (LdS) low business risk as an efficient electricity distributor in Lima, Peru (BBB/Stable) and its strong capital structure to support greenfield and expansion investments. The ratings also factor in LdS's proven market access to refinance material short-term debt and fund negative free cash flow (FCF). LdS's credit profile benefits from its linkage to parent China Yangtze Power Co., Ltd. (CYPC; A/Stable), with a one-notch uplift from LdS's standalone credit profile (SCP; bbb). Fitch Ratings views CYPC's operational incentives to support LdS as moderate and expects the parent to provide funds, if needed, to ensure that LdS's EBITDA leverage does not consistently exceed 3.5x....
