Research Update: Vattenfall AB Lowered To 'A-/A-2' On Increasingly Difficult Operating Conditions; Outlook Stable Dec 11
- Language: English
- Published: December 2011
The ratings on Sweden-based Vattenfall AB reflect the group's strong position as a major North European electricity utility, its competitive generation portfolio, major supply businesses, and significant energy utility monopoly operations that continue to underpin the rating, despite likely increased regulatory pressure. Negative rating factors include exposure to competitive and volatile markets in its key power generation business, exacerbated by generation output that exceeds end-user sales volumes, and challenges of integrating acquired companies. The ratings do not factor in any support from Vattenfall's 100% owner, the Kingdom of Sweden (AAA/Stable/A-1+). Although there have been signs of increased political scrutiny of the company's activities, the owner appears to have no plans for a restructuring or change in the group's strategy. Vattenfall...
Companies mentioned in this report are: Vattenfall AB
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