On Nov. 13, 2009, Empresa Electrica del Norte Grande S.A. (Edelnor) announced that the main shareholders, Suez-Tractebel S.A. (not rated) and Codelco (A/Stable/--), agreed to merge their stakes in several assets in Chilean electricity generation and gas transportation sectors. This merger might result in an important consolidation in the company's position in the SING in Chile. Standard&Poor's Ratings Services' ratings on Chile-based Edelnor mainly reflect the company's volatile cash flow generation and the market in which the company operates, partly due to natural gas shortages and volatile diesel oil prices. Edelnor's diversified generation base, larger contract base, and low debt offset these weaknesses. In addition, in September 2009, the company awarded several contracts to distribution companies in the
