S&P shifts Enagas view to negative

S&P said it revised the outlooks for Enagas SA and Enagas Transporte SAU to negative from stable and affirmed their BBB+ ratings.

“Enagas’ international diversification strategy has failed to provide the expected returns so far, with its related risks materializing in 2020 and persisting until 2022,” S&P said in a press release.

The outlook indicates ratings could be cut if Enagas cannot restore its FFO to debt to above 15% in 2021, trending above 17% in 2022, S&P said.

“The rating pressure stems from our assumption of lower contributions from Enagas’ midstream investments and sustained dividends, as well as the group’s reliance on external factors to restore its credit metrics,” the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.