On Nov. 9, 2005, Standard&Poor's Ratings Services raised its corporate credit and senior secured debt ratings on Chilean thermal power generator Empresa Eléctrica del Norte Grande S.A. (Edelnor) to 'B+' from 'B', mainly reflecting the improvement of its debt-service coverage ratios as a result of higher-than-expected cash generation combined with a prepayment of 12.1% of its US$217.6 million outstanding debt certificates in May 2005. The outlook is stable. The 'B+' ratings on Edelnor reflect the operation in a very competitive market environment and its still weak financial profile, which mainly derives from its volatile cash flow and weak financial flexibility. These weaknesses are partly offset by Edelnor's diversified generation base (mainly natural gas and coal), ownership of transmission
