Portuguese Gas Network Operator Galp Gas Natural Distribuicao S.A. Assigned 'BBB-' Rating; Outlook Stable

We are assigning our 'BBB-' corporate credit rating to Portuguese gas distribution network operator Galp Gas Natural Distribuicao S.A. (GGND). The rating reflects our review of management's signed agreement to sell a minority position (22.5%) to a consortium led by Marubeni Corp. and its successful €600 million euro medium term note (EMTN) issuance. The rating is also linked to our views on the consolidated creditworthiness of GGND and its parent, oil and gas company Galp Energia SGPS S.A., as well as our 'BB+' sovereign credit rating on Portugal. The stable outlook reflects GGND's long-term franchise agreement, supportive operating and regulatory environment, and management's track record of meeting regulatory expectations. LONDON (S&P Global Ratings) Oct. 5, 2016--S&P Global Ratings said today

...+ We are assigning our '###-' corporate credit rating to Portuguese gas distribution network operator Galp Gas Natural Distribuicao S.A. (GGND). + The rating reflects our review of management's signed agreement to sell a minority position (22.5%) to a consortium led by Marubeni Corp. and its successful 600 million euro medium term note (EMTN) issuance. + The rating is also linked to our views on the consolidated creditworthiness of GGND and its parent, oil and gas company Galp Energia SGPS S.A., as well as our '##+' sovereign credit rating on Portugal. + The stable outlook reflects GGND's long-term franchise agreement, supportive operating and regulatory environment, and management's track record of meeting regulatory expectations. LONDON (S&P Global Ratings) Oct. 5, 2016--S&P Global Ratings said today that it assigned its '###-' long-term corporate credit and issue ratings to Portuguese gas distribution network operator Galp Gas Natural Distribuicao S.A. (GGND). The outlook on GGND is...

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