, Fitch Ratings has stressed.
According to a new report, Latin American countries have a median regulatory score supportive of a 'BBB' rating.
Within this framework, Latin American electric corporates —outside of Argentina— have a Stable rating trajectory, as leverage steadies amid slowing investments.
"Uncertain political environments continue to inhibit investment in some countries, particularly Argentina and Mexico," said Lucas Aristizabal, Senior Director at Fitch Ratings.
Rated electric utilities hold a median rating of 'BB+', with 65% on Stable Outlook, 26% on Negative Outlook, and 9% on Positive Outlook.
The downgrade/upgrade ratio for the sector is expected to be 3:1 over the next 12-24 months, compared with 5:1 in 2018.
Fitch went on to add that median gross leverage will remain stable at approximately 4.0x in 2019, in line with the 4.1x median reported for 2017 and 2018. Consolidated gross revenue in U.S. Dollar terms will decline by 2.2% in 2019, after a modest increase of 0.7% in 2018.
Aggregate installed capacity is expected to increase by seven percent to 364GW in 2021 from 341GW in 2018, with notable growth in wind and solar, which is expected to reach eight percent of total installed capacity by 2021.