NEW YORK (Standard&Poor's CreditWire) March 19, 1999--Standard&Poor's today lowered its senior unsecured debt and corporate credit ratings on Empresa Electrica Del Norte Grande S.A. (Edelnor) to double-'B'-minus from double-'B'- plus. The ratings have been removed from CreditWatch with negative implications, where they were placed Nov. 13, 1998. The outlook is negative. Edelnor is 82% owned by Southern Co. (single-'A' issuer credit rating). Edelnor generates and transmits electricity in the Northern Interconnected System (SING), Chile's second largest electrical grid. The downgrade reflects: -- The anticipated loss of significant contract cover at the end of 2001; -- The entry of gas, and gas fired plants, which will create over capacity in the SING grid; -- Uncertainty as to
