Fitch rates Promigas BBB-

Fitch Ratings said it assigned BBB- local- and foreign-currency issuer default ratings to Promigas SA ESP.

The outlook is stable.

The agency said Promigas' ratings reflect the company's low business risk profile, which stems from its stable and predictable cash flow generation and its strong competitive position, and its strong financial profile, positive cash flow generation, low leverage and healthy interest coverage. As of December, the company's consolidated ratio of total debt to EBITDA plus dividends was 2.3 times in dollar terms.

Promigas is exposed to gas supply and regulatory risks as the bulk of its revenues come from regulated contracts, although these risks are believed to be moderate given Colombia's independent and balanced regulatory framework and adequate natural gas reserves, Fitch added.

© 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.