Spanish Utility Endesa Long-Term Rating Lowered To 'BBB+' Following Similar Action On Parent Enel; Outlook Stable Mar 12
- Language: English
- Published: March 2012
- Region: Spain
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This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
The ratings on Endesa S.A. are supported by Standard & Poor's Ratings Services' view of the company's solid position as one of Spain's largest vertically integrated electricity utilities with well-matched generation and supply businesses; control of Chile's largest electricity group; and reduced planned capital expenditures (capex). These strengths are partially offset by the effect on demand of depressed economic conditions in Spain, risk related to regulatory uncertainty in the Spanish energy sector, and exposure to Latin America. While the ratings reflect Endesa's stand-alone creditworthiness, we also take into account the credit quality of Italian parent Enel SpA (A-/Stable/A-2), which, in 2009, gained control over 92% of Endesa. According to our parent-subsidiary rating criteria, the ratings on Endesa are capped by...
Companies mentioned in this report are: Endesa S.A.
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