Fitch assigns stable view to EDP – Energias

Fitch Ratings said it affirmed EDP – Energias de Portugal SA and EDP Finance BV’s long-term issuer default ratings and senior unsecured ratings at BBB- and short-term issuer default rating at F3.

Fitch also said it removed the ratings from Rating Watch negative and assigned a stable outlook to the long-term issuer default rating.

The agency also affirmed Hidroelectrica del Cantabrico, SA’s BBB- long-term issuer default rating and F3 short-term issuer default rating.

The actions follow further disclosure on regulatory changes and the impact on EDP’s Spanish operations held directly and through its fully owned subsidiary Hidroelectrica del Cantabrico and EDP Renewables, as well as the delivery of the business plan for 2014 to 2017, including the management strategy to meet the de-leveraging target by 2017 when the long-term generation contracted revenues in Portugal will be exposed to price and volume volatility, Fitch said.

The stable outlook reflects a view that EDP will reduce its funds from operations adjusted net leverage to less than 5x by 2016 from 5.7x in 2013, the agency said, and as a result will meet the leverage guidance for a BBB- rating.

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