Moody’s Ratings has upgraded the international risk rating of Grupo ICE from Ba2 to Ba1 with a stable outlook, according to an announcement made on September 29. The Reventazón Hydroelectric Plant Trust received the same rating.
Since 2022, Grupo ICE has achieved three consecutive upgrades in its international credit rating. The current level places the institution one step below investment grade, which can increase investor confidence and provide better access to financing as well as more favorable loan conditions.
Marco Acuña, president of Grupo ICE, stated: “In 2022 we took over an institution without a project portfolio, unable to invest and lacking materials to address breakdowns. Today we are one step away from reaching a highly attractive level where very few arrive.”
The improved rating is attributed to several factors including growing electricity demand, diversified telecommunications revenue streams, and measures taken to mitigate currency risk associated with dollar-denominated debt. Over the past four years, the company has reduced its debt in this currency by 10%.
Keiner Arce, finance manager at ICE, said: “The financial performance we have shown, together with the perception of solidity in our operations, has increased investors’ confidence in our ability to meet our payment obligations.”
This progress is reflected in rising prices for international bonds on the securities market. Since November 2022, each issuance of these bonds has increased in value by between 18% and 39%.
