Current Report No.: 37/2021
Current Report No.: 37/2021
Date of Preparation: 1 December 2021
Issuer's Abbreviated Name: ENEA S.A.
Subject: ENEA S.A.'s ratings affirmed by Fitch Ratings
Legal Basis: Article 17(1) of the Market Abuse Regulation - confidential information
Body of the report:
The Management Board of ENEA S.A. ("Company") hereby reports that, in a press release issued on 1 December 2021, Fitch Ratings ("Agency") affirmed the Company's long-term foreign- and local-currency issuer default ratings at ‘BBB’ with a stable outlook.
The affirmation of the ratings reflects the Company's integrated business profile, encompassing a large generation fleet and electricity distribution with a moderate financial leverage. The ratings are supported by the large share in the Company's EBITDA of regulated activities in the form of electricity distribution as well as quasi-regulated activities in the form of inflows from the capacity market. Following its completion, the anticipated sale of coal-fired power plants to the National Energy Security Agency is likely to favorably affect the Company's credit profile. The key risk in this respect stems from the potentially insufficient factoring-in of increasing wholesale electricity prices in retail tariffs going forward from 2022.
The full wording of the statement in English is available on the Agency's website at https://www.fitchratings.com/research/corporate-finance/fitch-affirms-enea-at-bbb-stable-outlook-01-12-2021
According to the clarifications published on the Agency's website (https://www.fitchratings.com/products/rating-definitions), ‘BBB’ ratings indicate that expectations of default risk are currently low, while the capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.
Please note that the term EBITDA is defined as the value of operating profit (loss) + depreciation and amortization + impairment losses on non-financial non-current assets (values for the reporting period). EBITDA is a standard measure of efficiency of a business activity, in particular for the industry in which the Issuer's Group operates. The above definition and methodology for its calculation are the same as those used to calculate this indicator in the Issuer's periodic reports. The definition above is also included in the glossary of terms and abbreviations available on the Company's website (https://ir.enea.pl/slownik).
