Friday, July 1

Fitch improves Enagás’s outlook to ‘stable’ and reaffirms its ‘BBB +’ rating

In a statement, the credit rating agency highlights the strong liquidity position of the company chaired by Antonio Llardén, as well as compliance with financial metrics to reaffirm the ‘BBB +’ rating and a “robust” cash generation.

Thus, Fitch considers that the ‘stable’ outlook reflects its expectations that Enagás’ net leverage of funds from operations (FFO) will be broadly in line with its guidelines for the ‘BBB +’ rating in 2021-2024.

For its part, the company’s rating takes into account a highly predictable, although decreasing trajectory of regulated income in Spain and an “onerous and fully committed” dividend policy, both until 2026.

“We believe that the expected increase in gas network decarbonization and hydrogen capital spending from 2025, which is key to the long-term sustainability of Enagás’s business model, will put substantial pressure on credit metrics. for 2025-2026 “, indicates the agency.

Nonetheless, Fitch believes that increased visibility of the energy transition and income from divestitures will be critical to the rating’s sustainability over the medium term.

Leave a Reply

Your email address will not be published.