S&P stabilizes EP Infrastructure view

S&P said it changed its outlook for EP Infrastructure (EPIF) to stable from negative and affirmed the BBB- ratings on the issuer and its senior unsecured notes.

“Hedging risk from EPIF's eustream subsidiary linked to a full-gas-disruption scenario is adequately mitigated, in our view. Eustream takes short positions to cover for the natural gas-in-kind it receives from clients, calculated as a fixed percentage of the volumes of gas effectively transported. Our previous negative outlook had notably reflected eustream being materially exposed to hedging risk in 2023; we estimated a potential negative financial effect of €300 million-€400 million if transit gas volumes were materially lower than historically. However, since October 2022 eustream has unwound some of these short positions,” the agency said in a statement.

S&P said it forecasts EPIF will report funds from operations (FFO) to debt above 18% and debt to EBITDA below 4x in 2023-2024.

© 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.