(Finance) – The rating agency Fitch Ratings confirmed for ERG a Long Term Issuer Default Rating (IDR) of BBB- stable outlook and a senior unsecured rating BBB-. This confirmation – reads a note – “reflects the resilience of the business model and the portfolio of assets of the” fully renewable “Group as well as the” quasi-regulated “business profile which provides that 85-90% of the Group’s Ebitda is stabilized by tariffs determined through participation in government auctions or long-term Power Purchase Agreements (PPAs).
The confirmation of the rating also takes into account the new growth objectives of the 2022-2026 Business Plan based on a strong commitment to the growth of the RES portfolio and on the commitment to maintain the Investment Grade rating.
In this context, “in line with the financial policy of the ERG group which provides for a debt / EBITDA ratio of up to 4.0x over the plan period”, Fitch has revised upwards, from 4.2x to 4.4x, the level of the “FFO Net leverage “Necessary to maintain the current rating level, appreciating the Group’s asset rotation strategy, the acceleration of the geographic diversification process, the solidity of the” infrastructural “business model envisaged by the 2022-2026 Business Plan, ” extension of the average life span of incentives as well as the recent track record in the PPA market and in the awarding of auctions in Italy.