(Finance) – Fitch Ratings has confirmed the Long-Term Issuer Default Rating (Idr) of the Italian energy giant Enel and the Spanish subsidiary Endesa A “BBB+“. The outlooks remain stable. The confirmation reflects mainly”Solid strategic updates“by Enel and the solid operating performance in 2024, indicating a Funds from Operations (FFO) Net Leverage below the positive sensitivity of 4.0x.
For 2025-2027, Enel plans to significantly increase its attention on regulated networks, while maintaining a moderate net financial lever. Nonetheless, a planned increase of 30% of net investments compared to the previous plan. The increase is supported by a constant growth of ABITDA, which compensates for an expected increase in net debt of over 10 billion euros by 2027, according to the rating agency estimates. It therefore provides that the FFO NET Leverage will constantly remain below 4.2x, providing a satisfactory margin to the current rating.
As for investments in networks, Fitch observes that Enel has considerably increased its investments in the Italian “defensive” activities, With almost 40% of cumulative gross investments for 2025-2027 allocated to electrical distribution networks. There are also significant increases in investments in networks in Spain and Latin America compared to the increases in the previous plan, respectively 43% and about 60%. On the contrary, the expenditure for the development of renewable energies is unchanged In the main regions of 12 billion euros for 12 GW, with a preference for the wind farm compared to the solar, mainly to reduce the risk of the production profile.
Furthermore, with regard to the improvement of the Visibility of the AbitdaFitch provides for a progressive improvement of the solid profile Enel’s company, with a growing regulatory fee of Ebitda with the distribution of electricity which will reach about 40% by 2027. It prudently provides that the Ebitda will reach 23.1 billion euros, before the adaptation IFRS 16, in that ‘year. There is also a solid contribution from the long -term regulated and contractual generation in Latin America and the United States, as well as by the supply of integrated generation in Italy and Spain, leaving only a 10% residual exposure to commercial activities.