SAO PAULO (S&P Global Ratings) June 5, 2019--In line with the decarbonization of the energy matrix program backed by the Chilean government, four rated domestic electricity conglomerates announced yesterday several agreements with the Ministry of Energy to disconnect and stop operations at eight coal-fired units that have an aggregate installed capacity of around 1,570 megawatts (MW) between 2020 and 2040. We view the announcement as neutral from a credit perspective for the four power generators because: We had already factored into our ratings a gradual shift in the conglomerates' generation capacity to cleaner technologies from fossil fuels that's consistent with their sustainability programs. The Chilean government and regulators also worked with the electricity market participants on this plan, reaching a
