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Press Release

Fitch Ratings affirms credit ratings of Grupo Energía Bogotá at 'BBB' on an international scale

Bnamericas Published: Monday, September 27, 2021
Fitch Ratings affirms credit ratings of Grupo Energía Bogotá at 'BBB' on an international scale

GEB Press Release

  • The risk rating agency firm highlighted GEB's stable cash flow generation, its diversified portfolio and its ambitious growth strategy.

  • Regarding the agreement with Enel, Fitch pointed out that it is positive for GEB's credit profile, since it adds $ 965,000 million in dividends for retained earnings, increases the distribution of dividends to GEB from 70% to 90% and will give it access to businesses of renewable energy sources.

The Fitch Ratings agency, in its annual review of Grupo Energía Bogotá, affirmed the long-term credit ratings of Grupo Energía Bogotá (GEB) at “BBB” on an international scale and “AAA” (col) on a local scale, with a stable outlook. It also affirmed the ratings of the international bonds at “BBB” and the local ones at “AAA” (col).

GEB's positive rating, above Colombia's rating, reflects its diversification, stable and predictable cash flow generation, its strong business position in electric power and natural gas, an ambitious growth strategy that incorporates an investment plan capital in the medium term and adequate liquidity, given its participation in companies that maintain low business risk profiles.

Likewise, he highlighted the Group's dependence on the dividends received from its subsidiaries, which are financially sound, to service its debt, its continuous growth strategy and its dividend policy for its shareholders.

Among other facts highlighted by Fitch Ratings is the merger agreement between GEB and Enel Américas and considers that it is “positive for GEB's credit profile, since it adds $ 965,000 million in dividends trapped in 2021 and 2022, it will increase the payment percentage of dividends to GEB at 90% from 70%, will give it access to businesses in renewable energy sources and will resolve a long-standing dispute between the two companies ”.

The rating agency notes that, under the agreement, the new company will add approximately US $ 272 million in annual dividends for GEB, or a little more than half of its dividends from non-controlled companies.

In the case of Transportadora de Gas Internacional (TGI), Fitch Ratings affirmed the credit rating at BBB, with a stable outlook "reflecting the company's solid commercial position, its moderate exposure to regulatory risk and expectations of moderate leverage in the medium term" . Likewise, he highlighted the strong link with its parent company, Grupo Energía Bogotá, its solid position in the natural gas transportation business in Colombia, where TGI is the leader with a market share of 54% and 4,033 kilometers of gas pipelines.

For the president of Grupo Energía Bogotá, Juan Ricardo Ortega, “these positive ratings reflect the stability and solidity of the Group and its subsidiaries, and provide confidence to the market about the companies' prospects, the diversification of their businesses and the benefits of the agreement with its partner Enel, which will allow the creation of a larger, greener, more diversified and stable company, which will actively participate in non-conventional renewable energies and in the new technologies demanded by the cities of the future, for the benefit of the quality of life of the citizens".

About Grupo Energía Bogotá

With 125 years of history, Grupo Energía Bogotá (GEB) is a leading business group in the transmission and distribution of electric power and in the transportation and distribution of natural gas in Colombia, Peru, Brazil and Guatemala. In Colombia, with Transmission it develops electric power projects. With TGI it is number 1 in natural gas transportation with more than 4,000 kilometers of gas pipelines. In Peru, it is the leader in natural gas distribution with its companies Cálidda and Contugas and is present in the energy distribution business with Electro Dunas , Cantalloc and Perú Power. In Brazil, with Gebbras , it is associated with Furnas and has 1,100 kilometers of transmission lines and with Argo it has 1,460 additional kilometers. In Guatemala, it is number 1 in electric power transmission with Trecsa and Eebis.

This press release was published in English using an automatic translation system.

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