Standard&Poor's Ratings Services ratings on Chile-based power generator E-CL S.A. reflect the company's strong market position in Chile's Northern Interconnected System (SING) and its pricing flexibility because it works on a contracted basis, which allows it to pass through higher fuel costs to its customers. These factors are partly mitigated by volatile market conditions in SING, which are caused by severe natural gas shortages and fluctuating diesel oil prices, and projected increases in debt levels by 2012-2013 because of the company's potential material investment plans. We assess the company's business risk profile as "satisfactory" and its financial risk profile as "significant". E-CL's credit metrics in 2011 were relatively strong, with debt to EBITDA and FFO to debt of
