...February 18, 2022 - On Feb. 10, 2022, Naturgy announced its intention to split into two groups, one bearing all Spanish and Latin American power and gas grid operations (NetworksCo), and a second group including International LNG, Thermal Generation, Supply and Renewables (MarketsCo). However, we understand that no final decision has been made. - This is the third significant change in Naturgy's strategy in the past 18 months, which we believe points to below-average governance and an aggressive shareholder focus. It also adds to uncertainty about the company's ability to implement its 2021-2025 strategic plan. - We expect management to provide more details on the transaction over the coming months; it has publicly committed to an investment-grade rating and commented on its intention to preserve a '###' rating on both entities. However, we would need to evaluate the potential for additional leverage, future investments and policies, as well as notably MarketCo's higher business risk. -...
