Fitch Ratings reaffirmed Aguas de Cartagena with two high long-term and short-term credit ratings, AA+(col) and ‘F1+(col), respectively, with a long-term stable outlook.
The rating agency based its decision on the strong business position of the Cartagena company, as the sole provider of aqueduct and sewage services in Cartagena.
He believed that Acuacar has an adequate liquidity position supported by favorable operational generation, collection indicators of over 90% and the predictability of its revenues.
“The regulated nature of its rates, together with adequate collection levels, provide visibility and stability for operational and cash flow generation. The timely execution of investments has led to improvements in operational indicators, which should benefit future profit margins. User base growth of nearly 3%, along with rate adjustments based on indexation with the Price and Consumer Index (IPC), resulted in a revenue increase of 17% in 2022 over 2021,” he explained in the Fitch Ratings report .
It also took into account that Acuacar’s collection levels showed a favorable behavior of 25% at the end of last year, for which it achieved an efficiency of over 90% and resulted in an operating cash flow (FCO) of $70,500 million.
For its part, the company has set up an investment plan aimed at strengthening its infrastructure and impacting improvements in its operational indicators. In 2022, the average age of the debt will have risen to 5.7 years.
Fitch Ratings also highlighted that the company achieved a user base of nearly 295,000 in aqueduct and 270,000 in sewerage with 99.9% and 91.8% coverage, respectively, and 100% continuity of service; it also has a capacity to treat 100% of its wastewater.
“Meanwhile, water losses per billed user showed a decrease compared to 2021, explained by the reactivation of technical and commercial actions to control losses. The loss rate per billed user (IPUF) reached 11.25 cubic meters per user per month, down from 2021 of 11.78 cubic meters per user per month,” he stressed.
For Acuacar, this high-quality credit rating maintains its image of financial strength, enabling it to contribute to the city’s development and social transformation.
It should be remembered that debt ratio refers to the ability of a government or company to invest at low credit risk.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
