The ratings on Empresa Eléctrica del Norte Grande S.A. (Edelnor) reflect the Chilean company's weak but improving financial profile, partly offset by its diversified power generation base, ownership of transmission assets, which represents a competitive advantage in a highly competitive environment, and its 21% equity stake in the Gasoducto Norandino pipeline, which provides stable cash flow. Edelnor operates in Chile's Northern Interconnected System (SING), where about 40% of the nearly 2,600 MW of installed generation capacity depends on natural gas (considering dispatch restrictions imposed by the system's administrator to the relatively large natural gas-fired capacity). The need to burn coal or fuel oil as a result of gas supply shortages to gas-fired power plants and the system's oversupply when natural
