OREANDA-NEWS. Fitch Ratings has revised the Rating Outlooks on the Dominican Republic's generation companies' (GenCos) long-term foreign and local currency Issuer Default Ratings (IDRs) to Positive from Stable. See the full list of rating actions at the end of this release.

KEY RATING DRIVERS
These rating actions follow revision of the Outlooks on the Dominican Republic's long-term foreign and local currency IDRs to Positive from Stable. The sovereign rating revisions reflect country resilience through adverse domestic and external conditions, improving current account dynamics due to the increasing diversity of the export structure, and the continued progress on fiscal consolidation by the Danilo Medina administration.

The ratings of the Dominican Republic GenCos reflect the electricity sector's high dependency on transfers from the central government to service its financial obligations. The Dominican Republic's power sector is characterized by high electricity losses (above 30%) and consumption subsidies. The regular delays in government transfers puts pressure on the working capital needs of generators and add volatility to their cash flows. This strong dependence on government transfers links the credit quality of the distribution and GenCos to that of the sovereign.

As individual debt ratings do not carry Outlooks, they were not affected by this rating action.

RATING SENSITIVITIES
The IDRs could be affected by a rating action on the sovereign rating of the Dominican Republic. The Outlook for the Dominican Republic's foreign and local currency IDRs is currently Positive.

The factors for a positive rating action on the sovereign include:
--Continued strong investment and growth performance relative to peers without increasing macroeconomic imbalances;
--Sustained fiscal discipline that enhances the credibility of fiscal policy;
--Reduction of external balance sheet vulnerabilities.

FULL LIST OF RATING ACTIONS

AES Andres Dominicana SPV (AES Dominicana)
-- Foreign Currency IDR affirmed at 'B+'

The Outlook is Positive.

AES Andres B.V.
-- Foreign Currency IDR affirmed at 'B+'

The Outlook is Positive.

Empresa Generadora de Electricidad Itabo, S.A.
-- Foreign Currency IDR affirmed at 'B+'
-- Local Currency IDR affirmed at 'B+'

The Outlook is Positive.