S&P downgrades Enagas

S&P said it downgraded Enagas to BBB from BBB+.

“In our opinion, Enagas' international expansion strategy has dented the company's creditworthiness. Since February 2021 we have noted risks related to Enagas' diversification strategy. The downgrade to BBB reflects our view that these risks are likely to persist. Without adjusting financial policy and amid the gradual decline of remuneration of its Spanish transportation activities, Enagas is likely to post funds from operations (FFO) to debt of 14%-16% over 2022-2023,” the agency said in a press release.

Furthermore, S&P said a rebound in credit metrics is unlikely over the next two years because it is unlikely the company will be unable to recover proceeds related to Gasoducto Sur Peru in the short to medium term.

The outlook is stable.

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