Creditreform Rating has confirmed the BBB+ unsolicited rating of Naturgy Captal Markets, S.A. The stable outlook remains in place. The rating assessment is derived from the unsolicited corporate issuer rating of the parent company Naturgy Energy Group, S.A. (BBB+ / stable) due to corporate and liability laws as well as financial and strategic interdependencies. The rating result reflects the Group´s scale, its geographical and product diversification, as well as high proportion of regulated and contracted activities - reflected in a large proportion of stable and predictable cash flows. The Company has a solid earnings capacity and strong financial metrics, which have improved in the course of the implementation of the cost efficiency program introduced in 2018. Naturgy´s proved access to financial markets, solid liquidity, controlled investment policy and commitment to financial discipline underpin our rating assessment. However, a significant part of Naturgy´s business remains negatively affected by volatile power demand and prices. The Company´s generous dividend policy, with envisaged further annual increase in distribution payments and share buyback program, particularly against the backdrop of the overall economic slowdown resulting from the COVID-19 pandemic, coupled with a drop in energy demand and aggravated counterparty and liquidity risks, have a dampening effect on the rating.
Creditreform Rating has carried out an unsolicited rating of Naturgy Capital Markets, S.A. The rating has been set to BBB+ with stable outlook.