Credit rating company Moody’s Investors Service has upgraded the long-term rating of energy company Enel to Baa1, from the previous level of Baa2, with a stable outlook.
The ratings agency has also affirmed the Prime-2 short-term ratings of the subsidiaries Enel Finance International and Enel Finance America.
Moody’s affirmed that the upgrade of Enel’s rating reflects the realised progress in improving the Enel group’s business risk profile, as a result of continuing investments in networks and renewables, increased geographical diversification and focus on centralised financing.
Among the main key rating drivers for the upgrade, Moody’s focused on Enel’s low earnings volatility driven by large scale and geographical diversification and its stable earnings stemming from regulated networks and contracted generation, which account for 80% of the group’s earnings before interest, taxes, depreciation and amortisation.
Moody’s also focused on Enel’s solid financial profile, with funds from operations/net debt in excess of 20%.