NEW YORK (Standard&Poor's CreditWire) March 20, 2001--Standard&Poor's today lowered its senior-unsecured debt and corporate credit ratings on Empresa Electrica del Norte Grande S.A. (Edelnor) to triple-'C' from single-'B', and placed the ratings on CreditWatch with negative implications. Standard&Poor's may further lower Edelnor's ratings pending ongoing conversations with Edelnor's management. Edelnor generates and transmits electricity in the northern interconnected system (SING), Chile's second largest electrical grid. Mirant Corp. (triple-'B'-minus/Stable/'A-3'), a subsidiary of Southern Co. (single-'A'/Stable/'A-1') owns 82% of Edelnor. The downgrade reflects: -- Debt financing at the NorAndino gas pipeline project did not take place as forecasted (anticipated US$30 million cash flow to Edelnor); -- Uncertainty over Edelnor's ability to meet its financial obligations in
