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M&A Activity On The Increase In European Utility Sector, With Repercussions For Credit Quality Oct 05 Product Image

M&A Activity On The Increase In European Utility Sector, With Repercussions For Credit Quality Oct 05

  • Published: October 2005
  • Standard & Poors

FEATURED COMPANIES

  • E.ON SE
  • Endesa S.A.
  • Fortum Oyj
  • Iberdrola S.A.
  • RWE AG
  • SSE PLC
  • MORE

Abstract
The European utility sector is starting to see an increase in M&A activity after a period of relative inaction during 2003 and 2004. Standard & Poor's Ratings Services continues to believe that the principal threats to credit quality for European utilities are an increase in debt-financed M&A activity and/or shareholder pressure for enhanced returns. The risk and ratings impact of increased M&A activity would depend on the level of business and financial risk of the target company, its valuation and size, and how any deal is financed. Generally, however, large deals are financed with significant cash elements and, as a result, heightened M&A activity is expected to correlate with higher ratings risk. Furthermore, this risk is greater due to the...

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and READ MORE >

- Electricite de France S.A.
- GDF SUEZ S.A.
- United Utilities PLC
- Endesa S.A.
- Vattenfall AB
- SSE PLC
- Iberdrola S.A.
- Scottish Power U.K. PLC
- Suez S.A.
- E.ON SE
- Edison SpA
- Public Power Corp. S.A.
- National Grid Holdings One PLC
- Veolia Environnement S.A.
- EDP - Energias de Portugal S.A.
- RWE AG
- Enel SpA
- Union Fenosa S.A.
- EnBW Energie Baden-Wuerttemberg AG
- Fortum Oyj

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