Fitch revises Electrica’s outlook to ‘BBB-‘ stable

Fitch Ratings has revised the outlook on Electrica’s Long-Term Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR at ‘BBB-‘.

“The Outlook revision reflects improvements in Electrica’s funding structure, with a higher proportion of long-term funding than recent years when short-term financing was predominant. The Outlook also considers our expectations that leverage metrics will remain comfortably within our rating sensitivities from 2025 to 2029, supported by stable EBITDA generation and working capital inflows, primarily from subsidy collections for the supply scheme,” a Fitch release states.

The IDR reflects Electrica’s ‘bbb-‘ Standalone Credit Profile (SCP), underpinned by its business profile, with about 80% of EBITDA derived from regulated and predictable electricity distribution, and a financial profile consistent with the rating.

Alexandru Chiriță, CEO of Electrica: “The return to a “stable” outlook comes after a complex journey, amid the uncertainties generated by the pandemic and the energy crisis. The fact that today we have a superior outlook to the sovereign rating confirms the company’s resilience and adaptability. Fitch Ratings’ decision validates our sustained efforts to consolidate the financial position of the Electrica Group and supports us in implementing strategic plans, including in carrying out the green bond issue, approved at the end of 2024 and scheduled for this year. I thank all my colleagues for their effort and involvement in achieving these results.”