Research Update: Enel Chile S.A. 'BBB+' Ratings Affirmed, Proposed Notes Rated 'BBB+'; Outlook Remains Stable

Despite Enel Chile's recent incorporation of the assets that Enel Green Power Latin America held in Chile, and its buy-out of Enel Generacion Chile's minority shareholders, which will increase its leverage metrics, we expect the weakness to be temporary, since we hold that those levels will converge to historical levels by the end of 2019. We're affirming our 'BBB+' corporate credit ratings on Enel Chile and its core subsidiary, Enel Generacion Chile. We are also assigning a rating of 'BBB+' to Enel Chile's proposed notes for up to $1 billion. The stable outlook reflects our expectation that, after peaking in 2018, Enel Chile will post a debt-to-EBITDA ratio around 2.0x by year-end 2019. On May 30, 2018, S&P Global Ratings

...+ Despite Enel Chile's recent incorporation of the assets that Enel Green Power Latin America held in Chile, and its buy-out of Enel Generacion Chile's minority shareholders, which will increase its leverage metrics, we expect the weakness to be temporary, since we hold that those levels will converge to historical levels by the end of 2019. + We're affirming our '###+' corporate credit ratings on Enel Chile and its core subsidiary, Enel Generacion Chile. We are also assigning a rating of '###+' to Enel Chile's proposed notes for up to $1 billion. + The stable outlook reflects our expectation that, after peaking in 2018, Enel Chile will post a debt-to-EBITDA ratio around 2.0x by year-end 2019....

Research Update