Moody's promotes Enel's rating, Fitch confirms Acea's.
Moody's investors service upgraded Enel's long-term debt rating to 'Baa1' from the previous 'Baa2'. The outlook is stable. Moody's has also assigned a Prime-2 rating on the short-term debt of its subsidiaries Enel Finance International and Enel Finance America. The rating agency said that Enel's upgrade "reflects the progress achieved in improving the Group's corporate risk profile thanks to continued investments in networks and renewables, greater geographical diversification and a focus on centralized finance".
Among the main elements that led to the upgrade, Moody's identified the following: low earnings volatility supported by large size and geographical diversification; profit stability guaranteed by the regulated business of the networks and contractual generation, which represent 80% of the Group's Ebitda; financial solidity, with a funds from operations (FFO)/net debt ratio of over 20 per cent.
Coming instead to Acea Fitch Ratings confirmed the Long-Term Issuer Default Rating (IDR) to “BBB+” with outlook “Stable” and it Short Term IDR to “F2”. It was also confirmed the Long-Term Senior Unsecured Rating to “BBB+”.
The Agency explains that the confirmation of the rating reflects the focus of the Group's strategy on business regulated, the good performance of performance operations and the good level of liquidity available. These factors offset the increase in debt linked to the investment programs in innovation and sustainability envisaged in the 2020-2024 Business Plan.
