On May 8, 2003, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on the Germany-based electricity utility Energie Baden Wuerttemberg AG (EnBW) to 'A' from 'A+'. The outlook is stable. At the same time, Standard & Poor's assigned its 'A-1' commercial paper rating to EnBW's new €2 billion program. The downgrade chiefly reflects the deterioration of the company's financial profile, owing to acquisitions and heavy borrowing in 2002 and a mix of event risks relating to planned capital measures, further deregulation in Germany, and the company's general growth strategy. EnBW is a vertically integrated utility with about 4.85 million customers, mostly located in the State of Baden Wuerttemberg (AAA/Stable/A-1+). It generates, or procures through a long-term contract...
Companies mentioned in this report are:
- EnBW Energie Baden-Wuerttemberg AG
- Electricite de France S.A.
- Baden-Wuerttemberg (State of)
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