The 'B+' ratings on Chilean thermal power generator Empresa Eléctrica del Norte Grande S.A. (Edelnor) reflect its operation in a very competitive market environment and its still-weak financial risk profile, the latter of which mainly results from its volatile cash flow generation and weak financial flexibility. These weaknesses are partly offset by Edelnor's diversified generation base (mainly natural gas and coal), ownership of transmission assets, and its 21% equity stake in the Gasoducto Norandino pipeline, all of which somewhat mitigate the company's high cash flow volatility. Edelnor operates in Chile's Northern Interconnected System (SING), where about 44% (considering dispatch restrictions imposed on natural-gas-fired units) of the nearly 3,600 MW of installed generating capacity depends on natural gas availability. Edelnor is
