Bulletin: Court Ruling In Favor Of Enagas On Gasoducto Sur Peruano Arbitration Proceedings Is Rating Neutral

This report does not constitute a rating action. PARIS (S&P Global Ratings) Dec. 24, 2024—S&P Global Ratings said today that the award in favor of Enagas by the International Centre for Settlement of Investment Disputes (ICSID) on the longstanding arbitration proceedings related to the Gasoducto Sur Peruano (GSP) gas pipeline project is neutral for our 'BBB+' long-term issuer credit rating. On Dec. 20, Spanish gas transport company Enagas announced that the ICSID court had reached a binding resolution on the GSP arbitration, which Enagas initiated in July 2018, after the Peruvian government unilaterally revoked Enagas' concession in January 2017. Enagas had claimed for about US$505 million, consisting of guarantees triggered against Enagas and investments. The award orders the Peruvian state

...December 24, 2024 This report does not constitute a rating action. PARIS (S&P Global Ratings) Dec. 24, 2024--S&P Global Ratings said today that the award in favor of Enagas by the International Centre for Settlement of Investment Disputes (ICSID) on the longstanding arbitration proceedings related to the Gasoducto Sur Peruano (GSP) gas pipeline project is neutral for our '###+' long-term issuer credit rating. On Dec. 20, Spanish gas transport company Enagas announced that the ICSID court had reached a binding resolution on the GSP arbitration, which Enagas initiated in July 2018, after the Peruvian government unilaterally revoked Enagas' concession in January 2017. Enagas had claimed for about US$505 million, consisting of guarantees triggered against Enagas and investments. The award orders the Peruvian state to pay what Enagas estimates to be US$194 million, of which US$176 million are initial investments in the project, as well as accrued interest (1.44% annually from Jan. 24, 2018,...

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