Fitch has downgraded Compania General de Electricidad (CGE) to BBB (stable) from BBB+ because of higher than expected leverage levels. “While it was expected a consolidated leverage reduction in order to present a debt-to-Ebitda ratio below 5.0x by the end of 2009 and below 4.0x in 2011, after the new power generation assets purchase in September 2009, CGE will post a debt-to-Ebitda ratio near 5.7x and consolidated debt of approximately $3.2bn as of December 31,” says the agency. Fitch expects CGE to reduce leverage metrics starting in 2010 because of debt repayment using funds from projected capital injections for a total of approximately $280m between 2009 and 2010, of which $93m has already placed. “Projected capital infusions are particularly relevant to achieve leverage reduction, since during 2010 the holding will face debt maturities for approximately $200m,” says Fitch. The ratings incorporate an estimated financial debt increase in 2012 to finance the construction of Central Nuble project; a 136MW capacity run-of-river power generation unit that would represent a total investment of approximately $270m over 3 years. The downgrade also impacts CGE’s subsidiaries and follows a negative watch.