Research Update: IEnova's Stand-Alone Credit Profile Revised Up To 'bbb' And 'BBB' Ratings Affirmed On Sustained Deleveraging

Infraestructura Energetica Nova S.A.P.I de C.V. (IEnova) has continued to deleverage, given its strategy to allocate new debt at the parent's level and higher-than-expected dividends. On August 1st, 2024, S&P Global Ratings affirmed its 'BBB' long-term issuer credit and debt ratings on IEnova and revised upward its stand-alone credit profile (SACP) to 'bbb' from 'bbb-' given the revision of its financial risk profile to intermediate from significant, explained by the improvement in main credit metrics. This change is neutral for the final rating at this stage. The outlook on IEnova remains stable, reflecting that on its immediate parent, Sempra Infrastructure Partners L.P. (SI), which in turn reflects the outlook on the ultimate parent, Sempra (BBB+/Stable). The outlook also reflects our

...- Infraestructura Energetica Nova S.A.P.I de C.V. (IEnova) has continued to deleverage, given its strategy to allocate new debt at the parent's level and higher-than-expected dividends. - On August 1st, 2024, S&P Global Ratings affirmed its '###' long-term issuer credit and debt ratings on IEnova and revised upward its stand-alone credit profile (SACP) to '###' from '###-' given the revision of its financial risk profile to intermediate from significant, explained by the improvement in main credit metrics. This change is neutral for the final rating at this stage. - The outlook on IEnova remains stable, reflecting that on its immediate parent, Sempra Infrastructure Partners L.P. (SI), which in turn reflects the outlook on the ultimate parent, Sempra (###+/Stable). The outlook also reflects our expectation that IEnova will continue to benefit from stable and predictable cash flow and stabilizing leverage in the next 12-24 months with net debt to EBITDA of 2.5x-3.0x and funds from operations...

Research Update