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

March 20, 2018

ARLINGTON, Va.–(BUSINESS WIRE)–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.