Fitch cuts Gas Natural to A, A+

Fitch Ratings said it downgraded Gas Natural SDG's long-term issuer default rating to A from A+. Its short-term issuer default rating is affirmed at F1. Fitch also said it downgraded Gas Natural Finance BV's senior unsecured rating to A+ from AA- and affirmed its euro commercial-paper rating at F1.

The outlook is stable.

Although Gas Natural continues to benefit from leading positions in its core domestic natural gas market, where it benefits from strong control of basic gas infrastructure, the downgrades reflect risks related to the implementation of the 2008-2012 strategic plan, the agency said.

The plan includes a €12.5 billion investment plan and an increase in the dividend payout ratio to the 55%-60% range, Fitch said, and is expected to result in a moderately weaker credit profile.

© 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.