Standard&Poor's Ratings Services' 'B-' rating on Empresa Eléctrica del Norte Grande S.A. (Edelnor) reflects its weak financial profile, limited financial flexibility and the risk posed by the maturity of an important portion of its sale contracts between 2006 and 2008, increasing Edelnor's exposure to the highly volatile spot market. These weaknesses are counterbalanced by Edelnor's equity stake in the Gasoducto Norandino pipeline, which Edelnor expects to provide a stable cash flow stream, and its ownership of transmission assets, a competitive advantage it has in facing high competitive pressures in the Sistema Interconectado del Norte Grande (SING) in Chile, Edelnor's area of operation. Edelnor is a partially integrated utility, mainly engaged in power generation and, to a lesser extent,
