0 CHECKOUT

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

  • ID: 1712834
  • October 2005
  • Region: Europe
  • Standard & Poors
1 of 3

FEATURED COMPANIES

  • E.ON SE
  • Endesa S.A.
  • ENGIE SA
  • 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 existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

Note: Product cover images may vary from those shown
2 of 3

- Electricite de France S.A.
- ENGIE SA
- United Utilities PLC
- Endesa S.A.
- Vattenfall AB
- SSE PLC
- Iberdrola S.A.
- Scottish Power U.K. PLC
- E.ON SE
- Edison SpA
- Public Power Corp. S.A.
- 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
- National Grid Holdings One PLC
- Suez S.A.

Note: Product cover images may vary from those shown
3 of 3
Note: Product cover images may vary from those shown

PURCHASING OPTIONS

HAVE A QUESTION?

EMAIL US VIEW FAQs

Our Clients

  • Fluidigm Corporation
  • Apple, Inc.
  • CEVA Santé Animale
  • Abbott Laboratories Ltd.
  • Merck Group
  • Allergan Inc.
  • Pfizer Inc.