Fitch Takes EPM Off Negative Ratings Watch

Fitch Ratings has affirmed Empresas Públicas de Medellín’s (EPM) long-term foreign and local currency Issuer Default Ratings (IDRs) at ‘BB+’ and removed the Negative Rating Watch. The outlook is now stable. This action reflects Fitch’s assessment of EPM’s financial and operational stability.

Additionally, Fitch has affirmed the national long-term ratings of several EPM subsidiaries at ‘AAA (col)’ with a stable outlook. These subsidiaries include EPM Inversiones S.A., Empresa de Energía del Quindío S.A. E.S.P. (EDEQ), Centrales Eléctricas del Norte de Santander S.A. E.S.P. (CENS), Central Hidroeléctrica de Caldas S.A. E.S.P. (CHEC), Electrificadora de Santander S.A. E.S.P. (ESSA), Aguas Nacionales EPM S.A. E.S.P. (AGN), and Caribemar de la Costa S.A.S E.S.P. (Afinia). The national short-term ratings for these entities have also been affirmed at ‘F1+(col)’.

Furthermore, Fitch has removed the Negative Rating Watch on Aguas Regionales EPM S.A. E.S.P.’s national long-term rating, affirming it at ‘AA-(col)’ with a stable outlook. It affirmed the national short-term rating at ‘F1+(col)’. Empresas Varias de Medellín S.A. E.S.P. (Emvarias) also had its national long-term rating affirmed at ‘AA+(col)’ with a stable outlook, along with its national short-term rating at ‘F1+(col)’.

These affirmations indicate Fitch’s confidence in the financial health and operational performance of EPM and its subsidiaries.

Headline Image: Hidroituango Hydroelectric Dam. (Photo credit: EPM)