Fitch upgrades Calidda to BBB

Fitch Ratings said it upgraded Gas Natural de Lima y Callao SA's (Calidda) long-term local and foreign currency issuer default rating to BBB from BBB-.

The upgrade affects $320 million of senior unsecured notes due in 2023.

The outlook was revised to stable from positive.

Fitch said the upgrade reflects the company's improving capital structure supported by its naturally monopolistic market position as Lima and Callao's sole natural gas (NG) distributor.

It is further underpinned by the sustained cash flow stability provided by its transparent, regulated tariff scheme designed to ensure adequate return on investment. Calidda's cash flow generation also continues to benefit from expected demand growth of 100,000 client additions per year going forward, based on Fitch's estimates.

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