Research Update: Engie's Proposed Senior Unsecured Notes Of Up To $400M Rated 'BBB', Existing Ratings Affirmed, Outlook Remains Stable

Chilean power-generation company, Engie Energia Chile S.A. (Engie), is planning to issue up to $400 million in senior unsecured notes due 2030. The company will use the proceeds to cancel the $400 million senior debt due 2021. On Jan. 15, 2020, S&P Global Ratings assigned its 'BBB' long-term rating to the proposed senior unsecured notes. At the same time, we affirmed our existing our 'BBB' issuer credit and senior debt ratings on Engie. The stable outlook reflects our expectations that the company will maintain a market share of 7%-8% in the following years and that there won't be early termination of its contracts that could jeopardize the stability and predictability of Engie's cash flows. In addition, the outlook incorporates our

...- Chilean power-generation company, Engie Energia Chile S.A. (Engie), is planning to issue up to $400 million in senior unsecured notes due 2030. The company will use the proceeds to cancel the $400 million senior debt due 2021. - On Jan. 15, 2020, S&P Global Ratings assigned its '###' long-term rating to the proposed senior unsecured notes. At the same time, we affirmed our existing our '###' issuer credit and senior debt ratings on Engie. - The stable outlook reflects our expectations that the company will maintain a market share of 7%-8% in the following years and that there won't be early termination of its contracts that could jeopardize the stability and predictability of Engie's cash flows. In addition, the outlook incorporates our expectation that the company will develop its asset rotation strategy to increase non-conventional renewable capacity by 1 gigawatts (GW) with no significant deviations from the plan....

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