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AES Upgraded by S&P to BB+; Closes $1 Billion Sale of Masinloc and Uses All Proceeds to Reduce Parent Debt

AES Upgraded by S&P to BB+; Closes $1 Billion Sale of Masinloc and Uses All Proceeds to Reduce Parent Debt


ARLINGTON, Va. — The AES Corporation’s (NYSE: AES) credit rating was upgraded one notch by S&P Global Ratings (S&P), to BB+ from BB. The upgrade was a direct result of accelerated debt reduction from asset sale proceeds

“We are pleased that in recognition of our substantial de-levering, S&P has upgraded our credit rating to BB+. We remain committed to achieving investment grade credit metrics by 2019,” said Tom O’Flynn, AES Executive Vice President and Chief Financial Officer. “Our continued credit improvement should enhance our financial flexibility and improve our equity valuation.”

Today, AES closed the sale of its entire equity interest in its businesses in the Philippines, to SMC Global Power Holdings Corp. (SMC Global Power) for $1.05 billion in proceeds. The sale included AES’ equity interest in the 630 MW Masinloc coal-fired power plant in operation, the 335 MW Masinloc 2 coal-fired power plant under construction and the 10 MW Masinloc energy storage project in operation.

AES will use the proceeds from the sale of its businesses in the Philippines to retire $700 million of the aggregate principal amount of its Senior Unsecured Notes due in 2024 and 2025 that were recently tendered. The remainder of the proceeds will primarily be used to retire approximately $250 million of other Parent debt.

About AES

The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 15 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce is committed to operational excellence and meeting the world’s changing power needs. Our 2017 revenues were $11 billion and we own and manage $33 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in AES’ 2017 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any Stockholder who desires a copy of the Company’s 2017 Annual Report on Form 10-K dated on or about February 27, 2018 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.

Anand Gupta Editor - EQ Int'l Media Network


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