REG - Soc EnergElectricaSA - Fitch Rating-revision of BBB rating outlook

Societatea Energetica Electrica SAAnnouncement

24/04/2020 13:40

RNS Number : 8413K
  
Societatea Energetica Electrica SA
  
24 April 2020
  
 

 
ANNOUNCEMENT
The rating agency Fitch Ratings affirms Electrica's corporate rating at 'BBB', but revises its outlook to Negative from Stable following the revision of Romania's rating outlook 
In September 2019, Electrica Group, leader in the distribution and regulated supply of electricity in Romania, obtained the issuer corporate rating of BBB (Investment Grade), with a stable outlook, from the rating agency Fitch Ratings.
Following the revision of Romania's rating Outlook to Negative from Stable dated 17 April 2020, mainly as a result of the implications from COVID-19 pandemic, Electrica rating's outlook has been also revised to Negative from Stable as in Fitch's view, the Company's rating should be capped at one notch above the one of the Romanian state, the largest shareholder.
The confirmation of the BBB rating continues to reflect Electrica Group's solid financial profile, adequate liquidity, low leverage level, as well as the leading position both on the electricity distribution and regulated supply segments.
The Group's business profile is considered to be solid, relatively resilient to the COVID-19 outbreak and related economic shock, in particular due to the significant share of the distribution segment in EBITDA. 
With approximately 7000 shareholders from over 30 countries, Electrica has become a constant presence in the top of the most valuable Romanian brands. With a market capitalization of almost RON 3.3 billion, Electrica is the only Romanian company listed activating in the field of electricity distribution and supply in Romania. 
Any revision of the Outlook of the Romanian sovereign rating back to Stable would result in a similar action for Electrica's rating.
More details on the analysis performed and the criteria for granting the rating can be found in the statement published by Fitch: https://www.fitchratings.com/research/corporate-finance/fitch-revises-electrica-outlook-to-negative-on-sovereign-action-24-04-2020. 
 
Chief Executive Officer                                 
Georgeta Corina Popescu               
 
 


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