Empresa Electrica del Norte Grande S.A.'s (Edelnor) 'B-' rating reflects its weak financial performance, a very limited financial flexibility, and the uncertainties regarding the maturity of a great portion of its sale contracts between 2005 and 2008. These weaknesses are counterbalanced by Edelnor's equity stake in the Gasoducto Norandino pipeline, which is projected to provide a stable cash flow stream, and by the ownership of transmission assets, a competitive advantage with which to face the high competitive pressures in the Sistema Interconectado del Norte Grande (SING), Edelnor's area of operation. Edelnor completed a Chapter 11 reorganization on Nov. 5, 2002, which replaced US$340 million in bank debt with US$217 million 15-year debt certificates and a US$46 million subordinated shareholder loan.
