TEXT-Fitch release on International Power plc

(The following statement was released by the ratings agency)

June 6 - Fitch Ratings has today assigned International Power plc's (IPR.L: Quote, Profile, Research) (IPR) EUR700m 4.75% guaranteed convertible bond due 2015 a 'BB' rating. Fitch has also affirmed IPR's Long-term Issuer Default rating (IDR) at 'BB' with Stable Outlook.

Fitch considers the guaranteed convertible bond security to be a Class 'A' hybrid security (no equity credit). The Bonds will constitute direct, unconditional, unsubordinated and unsecured obligations of the Issuer. The payment obligations of the Issuer under the bonds and of the guarantor under the bond guarantee at all times rank pari passu with all their respective present and future unsecured and unsubordinated obligations.

IPR is an independent power generation company with interests in over 40 power stations and some closely linked businesses around the world. Its Long-term IDR of 'BB' is supported by the non-recourse financing nature of the group's debt at the operating level and historically conservative gearing levels at the holding company level, coupled with management's prudent approach to the acquisition and financing of new power generation assets.

IPR recently announced the acquisition of a 1,857 MW portfolio of peaking power assets in North America. The acquisition is expected to be funded by non-recourse project debt and equity. IPR has acquired the remaining 40% of the gas-fired Turbogas plant in Portugal from Energias de Portugal SA (EDP.LS: Quote, Profile, Research).