Fitch downgrades Naturgy

Fitch Ratings said it downgraded Naturgy Energy Group, SA's long-term issuer default rating to BBB from BBB+.

The outlook is stable.

The agency affirmed Naturgy's long-term debt instrument ratings and removed them from rating watch positive.

“The actions follow Naturgy's release of its strategic plan in June and our updated expectations for the period. The new plan provides visibility for the next five years and we assess it as fairly positive from a business risk standpoint,” Fitch said in a news release.

“It aims to increase the company's regulated and contracted profile, simplify the structure and gain focus in geographies, although growth is lower than other Southern European Utilities and it will largely be achieved beyond the rating horizon to 2022.”

The agency said the downgrade reflects the financial plan's failure to provide robust deleveraging from its peak in 2017 and to achieve structurally neutral to positive free cash flow after the potential share buyback.

© 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.