On Dec. 14, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Italian utility Enel SpA to 'A-' from 'A'; the rating remains on CreditWatch with negative implications. At the same time, the short-term corporate credit rating was lowered to 'A-2' from 'A-1' and removed from CreditWatch. The initial CreditWatch listing occurred on April 3, 2007, following Enel's joint debt-financed takeover bid with Spanish construction firm Acciona S.A. for 100% of Spanish utility Endesa S.A. (A-/Watch Neg/A-2). The rating actions reflect the weakening of Enel's financial profile--to levels no longer compatible with an 'A' rating--after the acquisition of an approximate 67% equity stake in Endesa for about €28.2 billion and some asset acquisitions in Russia for...
Companies mentioned in this report are:
- Enel SpA
- Endesa S.A.
- E.ON SE
- Enel Investment Holding B.V.
- Enel Finance International N.V.
Action: CreditWatch Update
Action: Removed From CreditWatch
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.
Product Type: Research Update
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