S&P ups Centragas note outlook to positive

Standard & Poor's said it revised the outlook on Centragas-Transportadora de Gas de la Region Central de Enron Development and Cia SCA's $172 million senior secured notes due 2010 to positive from stable and affirmed the BB rating on the notes.

The outlook revision follows S&P's revision of the outlook on the Republic of Colombia's BBB local and BB foreign currency sovereign ratings to positive from stable, which reflects the sovereign's better economic prospects coupled with continued improvements in the country's external indicators.

S&P said the BB foreign currency rating on Centragas' notes reflects the one-source revenue stream, liquidity risk from Centragas' bondholders' put option and nonrecourse to either the sponsors or off-taker.

The pipeline's strategic position in Colombia, its adequate tariff and bankruptcy remote structure and its healthy operation and debt service coverage records strengthen its credit profile and partially offset the risks, the agency said.

© 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.