S&P Global Ratings expects APA Group (ASX:APA) to manage an expected 43% rise in growth capital expenditure geared toward its development projects, according to a Thursday release.

The increase in the guidance to AU$3 billion from AU$2.1 billion consists of the Brigalow Peaking Power Plant and the expansion of the company's east coast gas network.

The increased capital allocation will absorb the buffer of financing arm APA Infrastructure, whose ratio of funds from operations to debt ratio of 10.4% in fiscal 2025 surpassed the rating agency's 9.5% downside threshold.

EBITDA growth is nearing above 7% for fiscal 2026, with the rating agency expecting expansion from existing operations and contribution from new assets to support this growth prospect within the next three years.

S&P believes the group will retain its history of carrying out projects with no significant business risk, as seen in the long-term contracted deal for the Brigalow Peaking Power Plant.

Meanwhile, the east coast gas network's stage three expansion anchors the company's growth through an additional 30% capacity, according to S&P.