Research Update: Spanish Utility Endesa 'A-' Long-Term Rating Placed On CreditWatch Negative Following Similar Action On Parent Enel Dec 11
- Language: English
- Published: December 2011
- Region: Spain
Largest vertically integrated electric utility in Italy, supported by leading positions in generation, distribution, and supply. Increased geographical and operational diversification following the acquisition of Endesa. Stable cash flow from low-risk regulated activities generating about 50% of EBITDA. Near-term hedging provides earnings protection for 2011 and, to a certain extent, 2012. Difficult market outlook for power wholesale prices and, consequently, electricity generation margins. Weak economic prospects in Italy heightening the risk of one-off taxes and other fiscal transfers and of strain on public-sector finances. Weak macroeconomic conditions coupled with regulatory uncertainties in Spain. Highly leveraged financial profile, resulting in weak, although improving, credit metrics. The 'A-' rating on Italian utility Enel SpA is based on the group's stand-alone credit profile...
Companies mentioned in this report are:
- Enel SpA
- Endesa S.A.
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: Full Analysis