Mensajepor diego0708 » Mar Dic 29, 2009 5:44 pm
Moody's Cuts Outlook On Argentina Power Company Citing Govt Reliance Last update: 12/29/2009 2:50:18 PM BUENOS AIRES (Dow Jones)--Ratings agency Moody's Latin America on Tuesday warned it may lower its rating for Argentine thermoelectric power plant Central Termica Loma de la Lata, citing heavy reliance on government revenues. Loma de la Lata recently signed a 10-year contract to sell half of the power from an expansion project to the government's wholesale market operator, Cammesa, instead of to the private sector, as had been planned, Moody's said. "In our view, this increases the project's exposure to the Argentine government," Moody's said. Cammesa operates at a loss and is supported financially by the government, it said. The electricity sector in Argentina "will continue to face significant uncertainties for cost recovery and a low degree of predictability of the timing and nature of changes in the regulatory environment," Moody's said. Loma de la Lata is adding a 176 megawatt steam unit to its existing 369 megawatts of gas-fired capacity, which should begin commercial operations in the third quarter. Pampa Energia S.A. (PAMP.BA, PAM), which owns Loma de la Lata, has guaranteed the power unit's $178 million notes due 2015 during the construction period, Moody's said. However, now that the contract with Cammesa has been signed, Pampa's guarantee won't be extended once construction is completed, Moody's said. Moody's pointed out that Loma de la Lata has $12 million in cash, and won't have to start paying down any of the money it borrowed until September 2013, "long after the expected start of the combined cycle's commercial operations." Moody's lowered its outlook
