The ratings on E-CL S.A. reflect the consolidation of the company's business risk profile following the merger of several power generation, transmission, and natural gas assets that belonged to its main shareholders. The ratings also reflect the company's greater stability of its cash flow generation due to the increased contract base and its higher pricing flexibility, which allows it to pass through higher fuel costs to its customers. These factors are partly mitigated by volatile market conditions in Chile's Northern Interconnected System, caused by severe natural gas shortages and fluctuating diesel oil prices, and projected increase in debt levels by 2012-2013 due to significant investment plans. We assess the company's business risk profile as satisfactory and its financial risk profile
