Research Update: Vattenfall AB Lowered To 'A-/A-2' On Increasingly Difficult Operating Conditions; Outlook Stable Dec 11
- Language: English
- Published: December 2011
Strong, vertically integrated position in the north European electricity market Large and geographically diverse operations Modern, flexible, low-cost generation portfolio Prudent trading and hedging policies Significant cash flow certainty from regulated, monopoly distribution and heating operations Exposure to competitive and volatile markets, exacerbated by long generation position Exposure to increasing regulatory and political pressure on monopoly operations Inherent operating risks of nuclear operations A significant capital expenditure program over the medium term The ratings on Sweden-based utility Vattenfall AB reflect its strong, vertically integrated position in the north European electricity market, competitive generation portfolio, significant monopoly utility operations, and strong cash flow generation. Negative rating factors include Vattenfall's exposure to competition and price volatility in power generation, political risks related...
Companies mentioned in this report are: Vattenfall AB,Vattenfall Treasury AB
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