Fitch Ratings has affirmed Fitch has also affirmed
A complete list of ratings follows at the end of this press release.
KEY RATING DRIVERS
Low Business Risk Profile: The investment grade ratings of
Operating Performance Remains Stable: The company generates stable and predictable cash flows from operations due to the nature of its business and the strengths of the regulatory environment. EBITDA has increased over the past two years to approximately
Extraordinary Dividend Payouts Ensure High Leverage:
Adequate Liquidity and Debt Market Access Favor Refi and Funding Activities:
Adequate Debt Profile after July Bond Issuance: Following the refinancing of
Non-organic Growth to Slow in 2014: In
Future developments that may, individually or collectively, lead to negative rating action include: the maintenance of leverage ratio at peak levels (6.5x); a change in the company's strategy that becomes more aggressive in terms of leverage, dividends, and capital expenditures; movements beyond the expected debt levels, liquidity, and operational earnings; or a change in the regulatory framework. With debt-to-EBITDA between 5.7x and 6.5x, Fitch believes
Given the company's high leverage levels, it is not envisioned that a positive rating action could take place. Although unlikely in the near term given the company's capital structure profile, a positive rating action could be considered if the company decreases its leverage position below 5.0x.
Fitch affirms the following ratings:
-- Foreign Currency IDR at 'BBB-';
-- Local Currency IDR at 'BBB-';
-- Senior unsecured international bonds at 'BBB-';
-- National scale rating at 'A+(cl)';
-- Local bonds, series C, D, E, F, H, I, K, L, M, N, O, P and Q at 'A+(cl)'.
-- Local bond programs No. 480, 481, 598, 599, 743 and 744 at 'A+(cl)'.
Additional information is available at 'fitchratings.com'.
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Fitch Ratings has affirmed
Fitch has also affirmed