(Finance) – Fitch Ratings confirmed for ERGa company listed on Euronext Milan and active in the production of electricity from renewable sources, a Long Term Issuer Default Rating (IDR) of “BBB-“with outlook”stable“.
The confirmation reflects the generation of visible cash flows of ERG from its onshore clean energy production, incentivized and contracted, largely in the long term, by the sale of its thermal assets and by the growing diversification by country (in the mature markets of Europe, the United Kingdom and the United States) and technology (in solar and batteries).
The ratings also take into account ERG’s credible commitment to the investment grade rating and the selective approach to growth opportunities in the updated 2024-2026 business plan. This should help maintain average funds from operations (FFO) net leverage of 4.0x over the rating horizon, rising to 4.3x in 2026 against a negative sensitivity of 4.4x. Slightly more conservative energy prices are included in the forecast, Bolt-on M&A and some additional cash-outs before FFO.