S&P rates Emgesa, notes BBB-

Standard & Poor's said it assigned a BBB- corporate credit rating to Emgesa SA ESP, along with a BBB- senior unsecured rating to the company's proposed 10-year bullet notes for up to $400 million, or its equivalent in Colombian pesos.

The outlook is stable.

The ratings reflect the company's strong competitive position, satisfactory free-cash flow generation ability and prudent leverage, S&P said.

Those factors are partially offset by Emgesa's inherent volatile profitability and cash flow due to its exposure to hydrological risk and an aggressive practice of paying dividend equivalent to 100% of net profits, the agency said.

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