The ratings on Chile-based E-CL S.A. (formerly Empresa Electrica del Norte Grande S.A., Edelnor) reflect the consolidation of the company's business risk profile as a result of the merger of several power generation, transmission, and natural gas assets that belonged to its main shareholders, and the greater stability of its cash flow generation due to the increased contract base and its higher pricing flexibility (that better allows to pass through higher fuel costs to its customers). Following the merger, E-CL became the largest power generator in the Northern Interconnected System (SING), with about 50% market share in terms of installed capacity, compared with 24% prior to the merger. These factors are partly mitigated by volatile market conditions in the SING
