S&P ups Transportadora de Gas

Standard & Poor's said it raised its corporate credit rating on Transportadora de Gas del Peru SA and the rating on its senior unsecured debt to BBB+ from BBB.

The outlook is stable.

"The upgrade reflects TGP's stronger operating performance, with revenue growth in the high single digits, and our expectation that solid annual free cash flow generation will exceed $100 million in the next two to three years since the company has decided to implement a less complex and costly capital expenditure program," S&P credit analyst Candela Macchi said in a news release.

The upgrade also reflects the company's sustained improvement in profitability, and our expectations that this will continue. The agency said it believes that the business risk profile benefits from the pipeline's excellent profitability.

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