Standard & Poor’s affirmed Cálidda’s corporate credit rating in investment grade.
30 April 2015
- Standard & Poor’s maintained investment grade for Cálidda’s corporate debt and reaffirmed its ‘BBB-’ corporate credit rating, outlook stable.
- The rating agency also considers Cálidda’s status as a “strategically important” subsidiary of Grupo Energía de Bogotá.
Bogotá D.C., April 30th 2015.The rating agency Standard & Poor’s (S&P) reaffirmed ‘BBB-’ senior unsecure debt rating of Gas Natural de Lima y Callao S.A (Cálidda), a controlled company of Grupo Energía de Bogotá, corresponding to an investment grade rating. Additionally, S&P affirmed Cálidda’s ‘BBB-’ corporate credit rating, outlook stable.
The agency highlighted Cálidda’s performance derived from its portfolio diversification by customer segment and the recent increase in the regulatory rates of return, which complements a moderate debt concentration. S&P noted that as a result of the above, Cálidda is capable to finance its expansion plans in prudent fashion, aiming to reach more than one million users at the end of this decade.
S&P also mentioned that the company has a "satisfactory" risk profile given its stable cash generation coming from its long-term participation in regulated business of natural gas distribution in the cities of Lima and Callao. At the same time, the agency highlights the support of Grupo Energía de Bogota, mainly through experience and a sound financial management, which allow Cálidda not only to contribute with the gas masification in Peru, but also with the long-term strategy of the Group.
In this regard, Ricardo Roa, CEO of Grupo Energía de Bogota, mentioned his satisfaction with this decision made by S&P, indicating that“Cálidda presents an excellent financial performance and has become one of our main subsidiaries. Indeed, this decision demonstrates the success of our strategic plans and expansion in the region”.
About Grupo Energía de Bogotá
Grupo Energia de Bogota is the leading corporation in the Colombian power sector. Through EEB it transports electricity to the most significant markets in terms of demand and size in the country and participates in the distribution of electricity. It controls nine affiliate companies and directly performs the activity of electricity transportation in Colombia, in a market with the highest demand in the country. In the electricity chain in Colombia, it participates in the distribution of electricity via Empresa de Energía de Cundinamarca – EEC. In addition, it controls the largest natural gas carrier in Colombia, TGI S.A with a stake of 49% within the market, including an extension of 3,957 Kilometers of gas pipelines, servicing highly populated areas in Colombia such as Bogota, Medellin, Bucaramanga de Coffee Region and Llanos Foothills. In Peru, its company CONTUGAS has a 30-year concession for the transportation and distribution of natural gas in the Ica Department, likewise with its company CALIDDA distributes natural gas in the regions of Lima and Callao. In that same country, together with ISA, it holds stocks in REP S.A. and TRANSMANTARO S.A., which operate 63% of the electricity transmission system in Peru. In 2010, it established TRECSA - Transportadora de Centroamérica S.A.- in charge of building the most important infrastructure Project in Guatemala and will render electric power transmission services as of 2014. Furthermore, GEB holds an investment portfolio in important companies in the electric power sector, in which the following stand out, CODENSA S.A., EMGESA S.A., GAS NATURAL S.A., PROMIGAS S.A. and Electrificadora del Meta - EMSA and to a lesser extent ISA and ISAGEN. As of 2013, the Group renders advisory and engineering services in Guatemala and Peru through its affiliate EEB Ingeniería y Servicios. Also, in 2014 it created the company Empresa de Movilidad de Bogotá SAS E.S.P., affiliate company dedicated exclusively to developing electric power mobility projects.
Nicolás G. Mancini-Suárez
GEB Financing and Investor Relations Manager