Nueva York.- Moody’s Investors Service elevó hoy las calificaciones senior no garantizadas de Enel Américas S.A. a Baa2 desde Baa3. La perspectiva de la calificación cambió de positiva a estable.
La mejora de la calificación refleja nuestra expectativa de operaciones mejoradas y generación de flujo de efectivo que conduzcan a métricas crediticias sólidas y continuas a medida que la compañía continúa expandiendo sus actividades y presencia en América Latina.
La estrategia comercial de la compañía se centra cada vez más en la descarbonización de su combinación energética, principalmente a través de la expansión en el espacio renovable, como lo demuestra la fusión de EA con Enel Green Power (EGP, vigente a partir del primero de abril de 2021). Es importante destacar que su considerable plan de expansión (US$7,8 mil millones en los próximos tres años) se desarrollará principalmente con flujos de efectivo generados internamente y sin aumentar el apalancamiento.
Nuestra visión crediticia anticipa que la deuda ajustada al Ebitda se mantendrá por debajo del doble, mientras que la relación entre el efectivo de las operaciones y la deuda neta mejorará gradualmente de alrededor del 30% a más del 35%, a medida que los proyectos en desarrollo entren en funcionamiento.
Entre los factores limitantes de la calificación se encuentra la creciente exposición de Enel Américas a las operaciones de Brasil (Gobierno de Brasil, Ba2 Estable), donde la empresa genera alrededor del 50% de su Ebitda. Además, las otras operaciones principales de la compañía tienen su sede en Colombia (Gobierno de Colombia, Baa2 Negativo) y Perú (Gobierno de Perú, A3 negativo), países cuya calidad crediticia también se está deteriorando como lo implican sus perspectivas negativas. Sin embargo, la exposición a las condiciones crediticias en esos países específicos se ve atenuada por la diversidad de las operaciones de la empresa tanto en la generación como en la distribución de electricidad.
Moody’s upgrades Enel Americas to Baa2, outlook stable; approximately $600 million of rated debt affected
New York, July 01, 2021 —Moody’s Investors Service («Moody’s») today upgraded Enel Americas S.A. («EA»)’s senior unsecured ratings to Baa2 from Baa3. The rating outlook was changed to stable from positive.
RATINGS RATIONALE
The rating upgrade reflects our expectation of improved operations and cash flow generation leading to continued strong credit metrics as the company continues expanding its activities and footprint in Latin America. The company’s business strategy is increasingly focusing on the decarbonization of its energy mix, mainly through the expansion in the renewable space, as evidenced by the merge of EA with Enel Green Power (EGP, effective April 1st., 2021). Importantly, its sizeable expansion plan ($7,8 billion in the next three years) will be developed mostly with internal generated cash flows and without increasing leverage.
Our credit view anticipates that adjusted debt to Ebitda will remain below 2 times while the ratio of cash from operations to net debt gradually improving from around 30% to over 35%, as projects under development come online.
The decline of the debt at the holding company level to around 10% of the total consolidated debt is an important consideration for the rating upgrade.
Among the rating’s constraining factors is Enel Americas increasing exposure to Brazil’s (Government of Brazil, Ba2 Stable) operations where the company generates around 50% of its Ebitda. In addition, the other main operations of the company are based in Colombia (Government of Colombia, Baa2 Negative) and Peru (Government of Peru, A3 negative), countries whose credit quality is also deteriorating as implied by their negative outlooks. Exposure to credit conditions in those specific countries is however tempered by the diversity of the company’s operations in both generation and distribution of electricity.
The integration of EGP into the EA’s platform is also positive in terms of diversification for cash flow generation. Furthermore, the strong positioning of EA subsidiaries in most of the major metropolitan areas of the region are integral to the company’s long term strategy, in particular the expected growth of Enel X as a leading innovation company, providing energy services that complement the regulated electricity distribution business.
The rating and stable outlook also recognizes EA’s strategic importance to its majority shareholder, Enel S.p.A. (Baa1 stable), and the potential for some level of support in case of financial distress.
Evidence of support has been demonstrated for example when the parent provided intercompany loans to finance its subsidiary strategic acquisitions. Since 2019 Enel S.p.A.’s direct and indirect share in EA increased to 65% from 51.8% through market transactions. The merge of EA and EGP has further increased Enel S.p.A shareholding interest in the consolidated entity to 82%. We believe EA’s operations are strategic to the Enel Group’s overall global strategy involving the transformation and innovation of the energy sector.
RATING OUTLOOK
The stable outlook incorporates our expectation that EA will maintain its current leverage around 2.0 times while it pursues its growth strategy without incurring into material additional debt and holding company debt remains in the range of 10%. The stable outlook anticipates a ratio of CFO (pre- WC) to adjusted net debt in the 30-35% range and RFC to adjusted net debt in the 20-25% range.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Considering the company’s operations in several countries in Latam that are facing deteriorating credit conditions and the exposure to the Brazilian operations, the Baa2 rating is currently well positioned on its rating category. However, if credit overall conditions stabilize,EA’s rating could be further upgraded upon sustained improvement in credit metrics such that interest coverage and CFO pre-W/C-to- net debt and RCF to net debt exceed 8.0x, 35% and 25%, respectively.
Negative rating pressure on the ratings could arise upon deterioration of key credit metrics such that CFO pre-W/C to net debt decreases to below 25%, interest coverage falls below 4.0x, or retained cash flow-to-net debt falls to below 18%. Negative regulatory developments and/or significant deterioration in the credit conditions on one or more of its key markets could also add negative pressure on the ratings.
PROFILE
Headquartered in Santiago, Chile, Enel Americas is a non-operating holding that holds interest stakes in several regulated utilities and power generation companies operating in Colombia, Peru, Brazil, Argentina and Central America. Enel Americas is controlled by Enel S.p.A. and listed in the Santiago and New York stock exchanges.
The principal methodology used in these ratings was Unregulated Utilities and Unregulated Power Companies published in May 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1066389.
Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.