Risk-to-Price Commentary: E.ON AG Mar 11

Standard & Poors, March 2011

Abstract
As the fourth-quarter 2010 reporting season for European companies continues, 180 companies of the S&P Europe 350 Index have reported so far. According to Bloomberg data, the utilities sector results were the biggest positive surprise, beating analyst expectations by 51.5%. All the sectors, taken together, beat expectations by an average of 6%. We looked into the utilities sector to find out which European utility companies contributed to the sector's high number. We learned that the largest surprise based on fourth-quarter basic earnings per share before extraordinary items, came from the German utility E.ON. We then looked at E.ON's annual earnings data and noticed that the company's earnings were 4% lower than expected. E.ON reported its annual earnings on March 9....

Companies mentioned in this report are:
- National Grid Gas PLC
- National Grid Electricity Transmission PLC
- SSE PLC
- International Endesa B.V.
- E.ON International Finance B.V.
- Centrica PLC
- Enel SpA
- RWE Finance B.V.
- National Grid PLC
- Fortum Oyj
- Enagas S.A.
- Red Electrica de Espana Finance B.V.
- Hera SpA

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.

- National Grid Gas PLC
- National Grid Electricity Transmission PLC
- SSE PLC
- International Endesa B.V.
- E.ON International Finance B.V.
- Centrica PLC
- Enel SpA
- RWE Finance B.V.
- National Grid PLC
- Fortum Oyj
- Enagas S.A.
- Red Electrica de Espana Finance B.V.
- Hera SpA

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