AQUALIA to Buy a 65% Stake in Georgian GGU for $ 180 Million

Fitch Ratings has rated Georgia Capital's long-term issuer Georgia Global Utilities with a default rating of B +, with an expected recovery rating of B + from RR4.

The change followed a statement that the Spanish company FCC Aqualia, S.A., had become a partner of GGU. The transaction involves two stages and it is expected that it will be closed by the end of September 2022, the first stage of the transaction will be completed in January.

The report says that Aqualia will buy a 65% stake in Georgian GGU for $ 180 million.

With that in mind, Fitch does not anticipate a change in GGU's business risks and debt volume.

"We may decide to lower the rating if we see that the new shareholder will pursue an aggressive financial policy, which will make the company's credit ratings inconsistent with the current rating. "Like this, strong financial performance will be the basis for rating growth," Fitch said in a statement.