Grupo ICE has received the highest long-term risk rating for an issuer in the Salvadoran securities market. On June 18, Moody’s Local El Salvador upgraded Grupo ICE’s rating from EAA+ to EAAA with a stable outlook. This is the top rating on Moody’s scale, indicating issuers with the greatest ability to meet principal and interest payments as agreed.
Additionally, Grupo ICE’s Standardized Bond Issuance Program was raised from AA+ to AAA, also with a stable outlook. Moody’s highlighted Grupo ICE’s strong credit profile through economic cycles as the main factor for this upgrade. The company’s role as the largest electricity provider in the region and its diversified income from telecommunications contributed to this assessment. The agency also noted Grupo ICE’s ample liquidity indicators and strong operating cash flow, which support its short-term obligations.
The improved rating also took into account a 7.8% reduction in Grupo ICE’s financial debt due to effective repayment of commitments, along with an increase in financial liabilities related to planned investment capital expenditures over the next five years.
Keiner Arce, finance manager at ICE, said: “Es un hito que nos posiciona en los mercados financieros local e internacional. Obtener la calificación máxima no es sencillo; es fruto de una visión estratégica, basada en decisiones responsables y técnicas que demuestran su efectividad, y que nos colocan como referente en el manejo de las finanzas públicas.”
Moody’s indicated that government support from Costa Rica remains strategic for Grupo ICE because of its role in providing essential public services.
Marco Acuña, president of Grupo ICE, stated: “Nos comprometimos a tener finanzas sanas y estables en todas nuestras empresas, para garantizar al país servicios de electricidad y telecomunicaciones sostenibles y de calidad. Aportar al desarrollo, la competitividad y el bienestar será siempre nuestro propósito.”
Between 2011 and 2012, Grupo ICE registered series E2 and F4 bond issues on El Salvador’s securities market as part of its financial activities. The current rating by Moody’s is part of ongoing oversight mechanisms required by regulations for issuers in that market.
