Moody’s Raises Chile’s Edelnor

Moody’s has upgraded Chilean gas and power utility Edelnor to Ba3 from B2, with a stable outlook. “The rating action primarily reflects an improved business environment for Edelnor due to the drastic reduction of low-cost natural gas imports to Chile from Argentina, thus allowing Edelnor to increase its contracted dispatch capacity,” the agency says, adding that it expects dispatch rates to remain high in the near term. Despite exposure to volatility in the mining and commodity sectors, Edelnor’s leverage has reduced, and cash flow generation and business risk profile have improved.