...Low Business Risk Profile: Transelec S.A.'s (BBB/Stable) ratings reflect a low business risk profile deriving from predictable and stable cash flow generation. This is due to the take or pay structure of revenue generation, characteristic of electric transmission companies. Fitch Ratings does not expect the new transmission law, approved in 2016, to have a material impact on the company's revenues. Stable Operating Performance: Transelec's operating results in 2016 were solid, mainly due to the effects of Chilean peso depreciation when compared to the U.S. dollar. This considers that the company's revenues are partially U.S dollar indexed. As of the LTM ended Sept. 30, 2016, Transelec recorded EBITDA of CLP239 billion with an EBITDA margin of 83.5%. EBITDA rose 3.6% compared with year-end 2015. Leverage Will Remain Pressured: The company's debt levels are considered high for the rating category, driven by an annual capex program of USD150 million and a dividend payment policy of 100% of...
