Thursday, October 5, 2023

S&P ratings agency considers Naturgy divestment unlikely and improves outlook for its debt

Ratings Agency S&P Considers Naturgy Divestment Unlikely And Improves Outlook For Its Debt

S&P ratings agency considers Naturgy divestment unlikely and improves outlook for its debt

In its latest report, S&P clarifies that it considers it likely that Naturgy (Gas Natural) will execute the Gemini project significantly lower and believes that the group will operate within a consolidated perimeter until at least 2025. Will continue It expects the group to maintain an adequate financial margin that allows it to invest more so as to shift its generation portfolio towards a higher load of renewable energy, thus differentiating with its counterparts in the sector. can be reduced gradually. For all these reasons, the outlook is revised to stable from negative and affirms long- and short-term credit ratings of BBB/A-2.

The electric company announced the Gemini plan on February 10 last year as part of an ambitious project to completely restructure its business. The Geminis project involves the split of Naturgy (the spin-off) into two companies, one with regulated assets (NetworksCo) and the other with unregulated assets (MarketsCo). Both the companies will continue to be listed separately on the stock market. Initially, both the companies will have the same composition in terms of shares and in terms of the board. The same shareholders and directors who are now in Naturgy will be in both companies.

The energy situation in Europe resulted from the outbreak of Russia’s War Against Ukraine, and Opposition to the Government He stopped the project. Rating agencies are also not taking kindly to this split.

According to Bankinter “The Gemini scheme was considered as an alternative so that the funds held in Naturgi Shareholding (GIP and CVC) would retain the liberalized assets (with which they could seek sale), while the sensitive regulated business would remain in business. hands of the norm (an investor who can give peace of mind to the government regarding the supply of gas to the country.) With this spin-off route, Naturgy will have to find an alternative to its strategy,

specialist in bankerwho give advice ‘Sell’ stock with a target price of € 28.40Which currently represents an upside potential of 8.2%.

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