...On Friday, 20 March, Empresas Publicas de Medellin E.S.P. (EPM, Baa3 negative) announced it won the auction to take control of the soon to be formed CaribeMar electricity distribution company, which will hold the right to operate in the northern departments of Bolivar, Cesar, Cordoba, and Sucre, in Colombia (Baa2 stable). The takeover increases the company's long term mandatory capital investments in the midst of looming uncertainties related to the emergency situation of its Ituango hydro plant, and is mildly negative to its credit profile. Despite EPM's significant experience and sector expertise, the concession area has a history of troubled operating metrics, including above average energy losses and delinquency ratios. The takeover of CaribeMar is supported by more favorable regulatory and fiscal conditions promoted by the government, including a special tariff regime which will allow EPM to engage in a more aggressive investment plan and promote substantial improvements in technical...