Obligations and guarantees
A transparent and controlled financial position
SAGESS’ financial strategy is built on two principles: balance and transparency. It is validated every year by the Board of Directors with a key objective of meeting financial needs in a proactive and secure way. This strategy is characterized by safe financial mechanisms based on diversification of resources. As agreed between SAGESS and the CPSSP, SAGESS recovers all its costs. It is protected from making a loss while disposing of its oil product reserves. Dedicated tax provisions are established to secure the system. Financing needs are almost completely covered by loans on the financial market.
Recognized financial stability
Since 2001, Standard & Poor’s has recognized SAGESS’ financial stability with AAA long-term rating and A-1+ short-term rating. The long term rating has been lowered to AA+ (negative outlook) in January 2012, following France rating downgrade. These long terme and short term ratings have been confirmed by Standard and Poor's in October 2012. For more than ten years, SAGESS has maintained a regular relationship with Standard & Poor's which projects stable future prospects and bases its rating on SAGESS’ guaranteed financial liquidity which is built by staggering the maturity of debts and permanently maintaining a 100% coverage of SAGESS use of its commercial paper program by bank back-up lines.This vision also rests on a system to recuperate all costs through the CPSSP, thus guaranteeing a balanced result.
SAGESS has a rating equivalent to France for various reasons:
- stable legislative environment,
- long-term support of the public authorities,
- public service mission,
- structure and regulation guaranteed by the CPSSP,
- transparency in management,
- new role as the Central Storage Entity for France as foreseen in the new European directive.