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

NEW YORK--()--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

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Contacts

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

Sharing

Contacts

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