NEW YORK (Standard&Poor's CreditWire) July 27, 1999--Standard&Poor's today affirmed its double-'B'-minus foreign and local currency rating on Empresa Electrica del Norte Grande S.A. (Edelnor). The outlook is negative. Edelnor generates and transmits electricity in the Northern Interconnected System (SING), Chile's second-largest electrical grid. Weaknesses include: -- The anticipated loss of significant contract cover at the end of 2001; -- The entry of gas, and gas-fired plants into the SING, which will create overcapacity in the SING grid; -- Uncertainty about Edelnor's coal plants ranking in the dispatch curve beyond 2001, given their marginal cost; -- A relatively high level of indebtedness; and -- A high degree of industry (copper and other mining) and customer concentration. Edelnor
