German Utility EnBW AG Outlook Now Stable On Higher Likelihood Of Extraordinary Government Support; Affirmed At 'A-/A-2' Nov 11

Standard & Poors, November 2011

Abstract
We believe that German-based utility EnBW Energie Baden-Wuerttemberg AG's credit risk profile will suffer from weaker profitability and cash flow generation, resulting mainly from the accelerated phase-out of nuclear generation in Germany and falling electricity generation margins. We are revising our assessment of EnBW's stand-alone credit profile (SACP) to 'bbb+' from 'a-', but revising our view of the likelihood of extraordinary support from the main shareholder to "moderate" from "low". We are therefore revising our outlook on the company to stable from negative and affirming our 'A-/A-2' long-term/short-term corporate credit ratings on EnBW. The stable outlook reflects our expectation that key credit metrics will stabilize at the level appropriate for the 'bbb+' SACP over the medium term. FRANKFURT (Standard &...

Companies mentioned in this report are: EnBW Energie Baden-Wuerttemberg AG
Action: Affirmed
Action: Outlook: Stable

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Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

EnBW Energie Baden-Wuerttemberg AG

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