Fitch Ratings downgraded the credit rating of the GNA II thermal power plant due to operational issues that affect its power generation and threaten cash flow at the beginning of 2027.
A recent operational incident at the GNA II thermal power plant has put the financial health of the project at risk for the coming years. The reduction in production capacity triggered a warning in the financial market about the sustainability of the project’s accounts.
Faced with this scenario of revenue contraction and fixed expenses remaining, the risk‑rating agency Fitch Ratings downgraded the credit rating of a R$ 750 million debt issuance by the company. The rating fell from AA-(bra) to BBB-(bra), remaining in Negative Watch.
The financial stress reflects a failure recorded in the turbine’s circuit breaker in August, which damaged the main transformer. The problem halted operations and forced a gradual return to service over the following months.
Operational impacts and financial commitments
The plant resumed work in September, operating at only one‑quarter of its total capacity. Only in November did the regulatory body authorize a move to about 60% of the plant’s installed power.
Full restoration depends on the arrival and installation of a new transformer, a process scheduled for the first quarter of 2027. By the second quarter of that year, production is expected to remain limited.
Even while generating less electricity, the plant’s contractual commitments remain unchanged. The main point of pressure is the supply agreement maintained with BP Gás Marketing, which requires minimum payments even without full fuel consumption.
The combination of lower revenues and the gas bill to be paid in January 2027 should force the company to use resources that are set aside to meet its financial obligations.
Cash scenario and project profile
Projections indicate that, after settling operational debts, the gas invoice, and debt service, the cash of GNA II will drop to approximately R$ 200 million. In September, that amount had accumulated R$ 1.1 billion.
Another source of uncertainty is the fluctuation of international natural gas prices, whose variations cannot always be fully passed on to the plant’s tariffs.
Despite the warning, Fitch Ratings notes that the reserves for paying the December debentures are secured. In addition, there is an expectation of financial support from shareholders should new challenges arise.
Located in the Porto do Açu complex in Rio de Janeiro, GNA II has 1.7 GW of installed capacity and is part of the thermal park of Gás Natural Açu (GNA). The project has long‑term power sales contracts guaranteed through 2047.
The positive revision of the credit rating by Fitch Ratings will depend on the successful implementation of cost‑containment measures and the full restoration of the plant during the first half of 2027.