S&P Affirms Enel Credit Rating, Maintains Negative Outlook
“We now asses the link between the Italian sovereign and the Italian power incumbent as limited instead of strong,” the rating agency said in a note published today.
The Italian government, which is Enel’s biggest shareholder with 31 percent, had its rating cut by one level on Sept. 20 on concern about its ability to cut debt. S&P had lowered Enel’s credit outlook in May, citing the government stake.
“Expected improvement of Enel’s financial risk profile, coupled with management actions to support its cash flow generation potential, may be challenged by the potential increase of the cost of funding,” S&P said.
To contact the reporter on this story: Alessandra Migliaccio in Rome at firstname.lastname@example.org