Debt and ratings

Debt and ratings

Our debt is low cost, has a high average duration, and a high proportion of fixed-rate debt. We have an investment grade rating of Baa2 from Moody’s and BBB+ from Fitch.

Financial strategy

The financial strategy is one of the pillars of our 2020-2026 Strategic Plan. The financial efficiency programme that we are committed to achieving involves continuous focus on maintaining an optimally balanced debt structure, with the aim of preserving the cost of debt (currently just under 1%) at excellent levels.

We expect cash generation to remain robust during the strategic plan period, supporting both organic growth and dividend payments. We also expect that cash generation will allow us to maintain our current creditworthiness.

The debt structure is in line with:

  • Regulatory profile.
  • Limited exposure to interest rates.
  • Financial out-performance.
  • Control of refinancing risk.
  • Competitive cost of debt, in line with guidance.

Credit rating

Moody’s

Fitch

Issuer rating

Issuer rating

Last updated: 3 December 2020

Last updated: 3 December 2020

Long-term: Baa2

Long-term: BBB+

Short term: not allocated

Short term: not allocated

Outlook: stable

Outlook: stable

Key debt ratios

Italgas already has an optimal financial structure, as proven by the ratio of Net Debt to RAB around 61.5%, a ratio of FFO to Net Debt slightly higher than 15%, a cost of debt of around 1%, and a weight of fixed-rate debt around 98%, which implies a limited exposure to interest rate volatility.

By keeping indicators at virtuous levels over the period covered by the Plan, Italgas expects to continue to benefit from rating metrics in the solid investment grade area. Notably, the Net Debt-to-RAB ratio is expected to remain consistently below 70% over the 2021-27 period.

Moreover, over the Plan period Italgas expects that significant operating cash flow will fully cover organic capital expenditure and a large part of dividend distribution, keeping the ratio of FFO to Net Debt well above the 10% level, which is the threshold defined by rating agencies for the classification of debt in the investment grade area.

A solid and efficient debt structure

4,66
billion euros
Net financial position as at 31 December 2020.
86,5%
Rate debt
Share of fixed-rate debt as at 31 December 2020.
<1%
Average debt
Average cost of debt.

Italgas Net Debt Structure (€ bn)

Short/Medium-Long Term Debt

Fixed/Floating ratio

Profilo del debito per scadenza

Debt profile by maturity (as at 31 December 2020)

 2020 2021202220232024202520262027202820292030203120322033Beyond 2033
Uncommitted credit facilities600        
 BEI 2032  2525252525252525252525 25 
 BEI 2035 888888888888813
 BEI 2037 242424242424242424242496
 BEI TE 2031488888888884
Bond 268.5 mln 0.5% Jan 2022268.5
Bond 480.9 mln 1.125% Mar 2024480.9
Bond 500 mln 0.250% Jun 2025 500
Bond 750 mln 1.625% Jan 2027 750
Bond 750 mln 1.625% Jan 2029750
Bond 600 mln 0.875% Jul 2030600
Bond 500 mln 1% Dec 2031500
682413106554656565815658156655615732113

Bond issues and bondholders

Since 2017 we have issued bonds for 4.5 billion euros.

Last update: