Standard & Poor's downgrades Enel's long-term credit rating to "BBB+" from the previous “A-” and confirmed at “A-2” the short-term indicator. The news, widely awaited by the management and shareholders of the company, especially after negative data on 2011 results announced yesterday, however, did not aggravate the concerns of CEO, Fulvio Conti: “The downgrade of Standard & Poor's has a modest financial impact – he said -, more of image than substance. But we are working, so over time we are convinced that in any case we will recover from this situation".
For Enel's number one, the agency's cut would only represent an effect of the recent downgrade on Italy's sovereign rating, reduced to "BBB". There would therefore be no reasons related to Enel's results or prospects at the basis of the downgrade, but only technical reasons.
According to CFO Luigi Ferraris, the negative judgment will result in a “marginal” impact on the cost of debt of the group: 15-20 basis points maximum, "I think we are in the range we can sustain during the course of the plan", which provides for an average cost of debt of 5,3%-5,4%.
The “BBB+” reflects – according to a note disclosed by the same agency – the deterioration of the macroeconomic framework of the Italian and Spanish markets and the increase in the variability of margins in the electricity generation sector. S&P also reported that the measures the company is implementing to counter the economic effects will help improve Enel's financial risk profile.
At Piazza Affari the Enel share loses 1,81% and stands, around at 11.40, on a value of 2,81 euros.
