Fitch maintained debt rating of gas distributor – Vanti
The natural gas distribution business is consolidated as a low-risk business.
“The rating is supported by the strength and predictability of the revenue stream. Derived from the regulated nature of the #gasnatural gas distribution business. From the maturity of the market served by the company and limited exposure to volume risk,” said Fitch.
Tariff review may reduce Vanti’s margins
The rating agency does not anticipate that the reduction in margins, expected from 2020 onwards, will affect the regulated operating activity. The regulated operating activity could be affected by the application of the new tariff methodology. This is not expected to have a negative impact on the company’s financial profile.
There are several individual or collective factors that could lead to a negative rating action. These include making investments in regulated distribution businesses, such as natural gas and unregulated in Vanti, significantly higher than those contemplated, such that they would require resources from debt significantly higher than estimated and that operating generation is considerably lower than projected.
The considerable net marge of operations over 38 stands out, compared to other companies in the #energia sector.