(Finance) – Moody’s confirmed the long term issuer rating Of A2Aan Italian multi-utility listed on Euronext Milan, at “Baa2” with outlook “stable“.
Today’s rating action reflects Moody’s current expectation that A2A will adopt adequate measures to mitigate the pressure on the financial profile of the group that will derive fromacquisition of a regulated electricity network in Lombardy. This should allow A2A to maintain a financial profile in line with the current Baa2 rating, i.e. maintaining a funds from operations (FFO)/net debt ratio in the “low 20s” range in percentage terms.
The rating action also takes into account Moody’s opinion that the A2A’s risk profile will improve marginally over time, given the greater attention to regulated energy networks in Italy, particularly in the electricity distribution sector. This will be supported by an increase in investments in electricity distribution and a reduction in investments in renewable energy production and waste and water activities compared to previous plans.
Moody’s rating also reflects positively the commitment by A2A for a solid investment grade ratingwhich Moody’s interprets as at least the current rating level, and is consistent with A2A’s track record in providing financial metrics above the minimum level required for the current rating.