Moody’s Puts Gener Outlook on Negative

Moody’s has lowered its outlook for Chile’s electrical generator AES Gener to negative from stable. An increase in natural gas curtailments and, to a lesser extent, weak hydrology conditions negatively impacted Gener’s consolidated operating margins and cash flow during 2007, according to the agency. “Gener’s near-term financial profile is expected to remain weak as the company manages through expected further gas curtailments and a significant construction program,” says Moody’s. Headquartered in Santiago de Chile, AES Gener is Chile’s second-largest electricity generation company. It is 80% owned by AES Corporation with 20% listed on Chile’s exchange.