News Column

Fitch Downgrades AES Puerto Rico L.P.'s Senior Bonds to 'CC'; Maintains Watch Negative

June 27, 2014



NEW YORK--(BUSINESS WIRE)-- Fitch Ratings downgrades the following AES Puerto Rico (PR) L.P obligations to 'CC' due to the downgrade to 'CC' of the project's offtaker, the Puerto Rico Electric Power Authority (PREPA):

--$161.87 million 6.625% Cogeneration facility revenue bonds, series A (tax-exempt bonds) due June 1, 2026; and

--$33.1 million 9.12% Cogeneration facility revenue bonds, series B (taxable bonds) due June 1, 2022.

Fitch also maintains the bonds on Rating Watch Negative.

In the event of a default or debt restructuring on behalf of PREPA, Fitch will review the impact to AES PR and determine the appropriate rating action.

For more commentary on Fitch's Public Power rating action on PREPA, please see 'Fitch Downgrades Puerto Rico Electric Power Auth's Rev Bds; Maintains Watch Negative' (dated June 26, 2014) available on Fitch's website at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Rating Criteria for Infrastructure and Project Finance' (July 11, 2012);

--'Rating Criteria for Thermal Power Projects' (June 17, 2013).

Applicable Criteria and Related Research:

Rating Criteria for Infrastructure and Project Finance

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=682867

Rating Criteria for Thermal Power Projects

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=710786

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=836993

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Primary Analyst

John Kennedy, +1-212-612-7853

Director

Fitch Ratings, Inc.

33 Whitehall St

New York, NY 10004

or

Secondary Analyst

Andy Joynt, +1-415-732-5562

Associate Director

or

Committee Chairperson

Greg Remec, +1-312-606-2339

Senior Director

or

Media Relations, New York

Elizabeth Fogerty, +1-212-908-0526

elizabeth.fogerty@fitchratings.com

Source: Fitch Ratings


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