Spain-Based Naturgy Energy Group Affirmed At 'BBB/A-2' Despite A More Aggressive Financial Policy; Outlook Stable

Naturgy has unveiled its 2018-2022 strategic plan, which is focused on larger shareholder remuneration, capital expenditure (capex) optimization, and cost cutting. The company remains well positioned at the current rating level, thanks to the significant contribution from network activities in Spain and Latin America, as well as its large generation and supply activities, and we expect financial leverage to remain unchanged over 2018-2022. We are affirming our 'BBB/A-2' ratings on Naturgy. The stable outlook reflects our expectation that Naturgy will maintain funds from operations (FFO) to debt above 18% over 2018-2019 with good operating performance, despite higher shareholder remuneration than peers' over 2018-2020. PARIS (S&P Global Ratings) July 18, 2018--S&P Global Ratings today affirmed its 'BBB/A-2' long- and short-term issuer

...+ Naturgy has unveiled its 2018-2022 strategic plan, which is focused on larger shareholder remuneration, capital expenditure (capex) optimization, and cost cutting. + The company remains well positioned at the current rating level, thanks to the significant contribution from network activities in Spain and Latin America, as well as its large generation and supply activities, and we expect financial leverage to remain unchanged over 2018-2022. + We are affirming our '###/A-2' ratings on Naturgy. + The stable outlook reflects our expectation that Naturgy will maintain funds from operations (FFO) to debt above 18% over 2018-2019 with good operating performance, despite higher shareholder remuneration than peers' over 2018-2020. PARIS (S&P Global Ratings) July 18, 2018--S&P Global Ratings today affirmed its '###/A-2' long- and short-term issuer credit ratings on Spain-based vertically integrated gas and electricity utility Naturgy Energy Group S.A. The outlook remains stable. We also affirmed...

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