Research Update: RWE AG Downgraded To 'A-' On Challenging Business Outlook And Weakening Credit Metrics; Outlook Negative Jun 11
Standard & Poors, June 2011
Abstract
We are revising our business risk profile assessment on German integrated utility RWE AG to "strong" from "excellent". We consider that RWE's profitability could materially decline in the coming years and that its financial risk profile is also likely to weaken as a result of high investment levels. We are lowering our long-term and short-term ratings on RWE to 'A-' and 'A-2', respectively, and removing all ratings from CreditWatch where they were previously placed with negative implications. The outlook is negative, primarily reflecting our concern that RWE's credit metrics, which we expect to significantly weaken in 2011 and 2012, could remain below our rating guidelines over the longer term. On June 8, 2011, Standard & Poor's Ratings Services lowered its...
Companies mentioned in this report are: RWE AG,RWE Finance B.V.,Essent N.V.,Essent Nederland B.V.
Action: Downgraded
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
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
RWE AG,RWE Finance B.V.,Essent N.V.,Essent Nederland B.V.
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