Fitch downgrades Enagas

Fitch Ratings said it downgraded Enagas SA’s long-term issuer default rating to BBB+ from A- and removed it from rating watch negative. The outlook is stable.

The downgrade reflects the worsening business-risk profile as a result of a materially higher share of non-regulated earnings expected over the rating horizon to 2023. The growing non-regulated dividend income stream and the gradually decreasing Spanish regulated revenue, as reflected in the final regulatory circular for 2021-2026, led Fitch to tighten the leverage sensitivity for an A- rating

“Our forecast average funds from operations (FFO) adjusted net leverage of 4.8x for 2020-2023, including the recent capital increase, is no longer commensurate with an A- rating, driving the downgrade,” Fitch said in a press release.

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