S&P Global and Fitch reaffirm Cepsa’s investment grade credit rating and Stable outlook

• S&P Global revises Cepsa’s outlook to Stable with Long-Term Issuer Default Rating (“IDR”) of BBB- reflecting supportive market conditions and solid financial policy as well as expectations for a better performance in 2024s
• Fitch Ratings reaffirms Stable outlook for Cepsa with credit rating of BBB-, citing its diversified business profile and strong market position in the Iberian Peninsula
• Confirmation of Stable outlook from both S&P and Fitch is a significant endorsement to Cepsa’s business strategy and recognizes the strength of the Group’s financial position and market outlook

The rating agencies S&P Global and Fitch Ratings have confirmed Cepsa’s investment grade credit rating, with S&P Global raising its outlook to Stable and Fitch reaffirming its Stable outlook for the Group, as part of their annual review.

S&P has revised Cepsa’s outlook to Stable from Negative based on supportive market conditions, expected improved financial performance and sound financial policy, whilst Fitch has reaffirmed Cepsa’s long-term issuer credit rating at BBB-, highlighting its diversified business profile and strong market position in the Iberian Peninsula.

The update from S&P and Fitch on Cepsa’s rating and outlook are a recognition of the strength of Cepsa’s business and balance sheet profile, an adequate financial policy and positive market environment. Cepsa´s credit rating with Moody´s remains unchanged at Baa3 with Stable outlook.

Cepsa ended 2023 with net debt of €2.3 billion, a meaningful reduction compared with €2.8 billion in 2022, on the back of a strong free cash flow generation. Cepsa has also maintained a healthy net debt to EBITDA position which limits risk across the business and allows the Group to maintain optionality in response to market conditions. The Group maintains a comfortable liquidity position with a cash and available facilities of €4.4 billion (as reported by the Company for December 2023), covering debt maturities until 2028.

Carmen de Pablo, CFO and Director of Strategy and Sustainability at Cepsa, said: “The improvement of our outlook to Stable by S&P and affirmation of a Stable outlook from Fitch is testament to the Company’s strategy, business outlook and sound financial policy. Cepsa remains in a strong financial position as we look to implement key strategic projects in biofuels, sustainable aviation fuel (SAF), green hydrogen and ultra-fast electric charging, reinforcing our commitment to sustainable development. At Cepsa, we remain committed to preserving our investment-grade credit rating and to soundly pursuing a green energy transition through the execution of our Positive Motion strategy.”

The Company has received top ESG ratings in its sector from international agencies such as S&P Global, Moody’s and Sustainalytics in recognition of its ESG commitments and achievements. In 2023, Cepsa had already achieved half of its 2030 target to reduce Scope 1 and 2 emissions by 55% and made significant progress in its 2025 goal to reduce freshwater withdrawal by 20%. In addition, Cepsa is already approaching its 2025 target of at least 30% women in leadership positions.