(Finance) – Moody’s confirmed the rating Of Is in the to “Baa1” andnegative outlook. Today’s rating action reflects Moody’s current assessment of Enel’s prospects recover your financial profile at a level commensurate with the current Baa1 rating, we read in a note.
While, based on probabilities, Enel is expected to reach this financial profile by the end of 2024, and maintain it in the medium term based on divestiture program announced, ofincrease in revenues resulting from newly installed renewable capacity, of one growing regulatory asset baseand of reduced capital expenditure through the sale of stakes in new and/or existing projects, the risks remain that these financial hurdles will not be reached.
Furthermore, theambitious investment program of Enel and the significant distribution policy to shareholders will likely result in a credit profile fairly close to the lows for the rating, putting an emphasis on management’s commitment to take steps to offset the financial impact of any underperformance if its plan starts to go off track.
With the’advance to 2024 there should be greater visibility on the disposal program and progress in implementing the strategy recently announced by Enel.