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Investing.com -- Moody’s Ratings has downgraded Grupo Energia Bogota S.A. E.S.P. (GEB) to Baa3 from Baa2, while changing the outlook to stable from negative.
The rating agency lowered GEB’s issuer rating and senior unsecured debt ratings, but affirmed the company’s Baseline Credit Assessment of baa3, which measures GEB’s standalone creditworthiness.
This downgrade follows similar rating actions on the Government of Colombia and Bogota, Distrito Capital, which were both lowered to Baa3 from Baa2. Bogota is considered the support provider for GEB under Moody’s analytical framework for Government Related Issuers.
The Baa3 rating reflects Moody’s joint default analysis, which considers GEB’s baseline credit assessment, Bogota’s Baa3 rating, Strong implied government support, and Moderate dependence between GEB and Bogota. These factors take into account Bogota’s 66% ownership of GEB and the strategic nature of the company’s services.
GEB benefits from a diversified energy portfolio with significant equity interests in subsidiaries operating across Colombia, Peru, Brazil, and Guatemala. The company’s key controlled subsidiaries with investment-grade profiles contributed 50% of total EBITDA in 2024.
As of March 2025, GEB recorded a cash interest coverage of 3.5x and a leverage ratio of 18.2% based on three-year averages. Moody’s expects a slight deterioration in cash flows for year-end 2025 and 2026, projecting cash interest coverage around 3.2x and a leverage ratio near 16.5% over the next 12-18 months.
The company maintains adequate liquidity and has a manageable debt maturity profile. In 2025, GEB plans to refinance approximately $250 million of subsidiary maturities, a $225 million loan for a non-consolidating subsidiary, and Calidda’s $430 million debt through a mix of bonds and loans.
GEB follows a high dividend distribution policy with a minimum 70% payout ratio after meeting certain liquidity reserves.
The stable outlook reflects both the stable outlook on Bogota and GEB’s historical ability to execute growth investments without significantly affecting its creditworthiness.
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