Fitch revises Calidda to positive

Fitch Ratings said it affirmed the local and foreign currency long-term issuer default rating of Gas Natural de Lima y Callao SA (Calidda) at BBB- and revised the outlook to positive from stable.

Additionally, the agency affirmed the BBB- rating assigned to the $320 million senior unsecured notes.

Fitch said the positive outlook reflects the company's improving credit metrics which are due to an increase in number of customers, higher volumes, additional revenues from relocation services, and a favorable natural gas distribution tariff revision.

Calidda was able to decrease its leverage to levels below Fitch's expectations. The agency projects gross leverage could further decline within the next two years and stabilize in the 3 times to 3.5 times range. The company's ability to maintain gross leverage below 3.5 times on a sustained basis could result in a positive rating action.

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