Rating agency Fitch confirmed the long-term rating and senior unsecured rating of Enel at BBB+ with stable outlook. The American rating agency also confirmed the long-term and senior unsecured ratings of the Spanish subsidiary Endesa at BBB+ and A-. The motivations of the agency are particularly positive. In their comments on the rating decisions, Fitch's analysts explain the reasons for the stable outlook: it reflects expectations, they write, that "favorable market conditions and Enel's credible commitment to sell 21 billion in the period 2022-2024”. Two factors “capable of bringing leverage on FFOs (Funds for Operations) below the sensitive threshold of 4,9x starting from 2023”.
Fitch: the expected reduction of Enel's debt leads to a stable outlook
Thanks to the disposals, Fitch analysts assume “a reduction in net debt of 14,3 billion in 2023-2024 with the proceeds of asset disposals while our average Ebitda for 2023-2025 is around 19,9 billion euros , taking into account our conservative assumptions mainly on its integrated margins in Italy and Spain in 2024-2025. This leads to a net leverage on FFO of 4,7x over the period 2023-25”. Enel, Fitch adds, "is at the forefront of the energy transition, which we expect will reward the group with solid profits in the medium to long term, with a greater focus on geographical areas where its clean generation can match supply volumes, guaranteeing vertical integration and natural coverage”.
Brazil, Colombia and Chile will contribute 23% of the Enel Group's Ebitda
It is the 2023-25 Strategic Plan, with the 21 billion non-core disposal program guiding Fitch's considerations. Under the Plan, “the reduced exposure to Latin America after sales in Peru, the exit from Eastern Europe and a lower exposure to the gas value chain, should moderately improve the Group's business profile and simplify its structure”, observe Fitch analysts who estimate that “the exposure remaining on Brazil, Colombia and Chile would contribute to 23% of overall Ebitda”. In Fitch's opinion, this picture "is partly offset by the modest reduction in the share of regulated business (35% in 2025 against 37% in 2022), while the share of integrated business (generation + distribution and services) is seen to grow gradually to 48% from 30%, in this same period”.
Fitch: Spain retains an important role, Endesa strategic
Finally Spain. Fitch welcomes the repositioning of Enel sui core countries and with a integrated commercial strategy (Sci) because it supports the strategic role of Endesa within the Group. Fitch notes that around 29% of SCI investments are allocated to Spain based on plans to grow renewable generation capacity by 4,4 GWatts by 2025. Furthermore, it points out, a growing share of free fixed-price customers will be served by generation within the low-cost group. Finally, Fitch analysts conclude, Enel has announced the sale of part of its gas portfolio in Spain, in line with the group's strategy of reducing gas risk. “We expect Endesa to contribute about a quarter of the Enel Group's EBITDA in the horizon of 2025”, concludes Fitch.
ENEL DISTRIBUZIONE: 1.250 new hires on the way
With the agreement signed yesterday, Enel Distribuzione and the unions have agreed to hire 1.250 young workers and technicians in the current year, which will add to those hired in the last two years, bringing the company's new employees to over 3
