Fitch revises EDP's outlook to positive

Fitch Ratings said it revised EDP – Energias de Portugal, SA's outlook to positive from stable. Fitch affirmed the long-term issuer default rating and senior unsecured rating at BBB-.

The positive outlook mirrors Fitch's expectations of a sustainable improvement in leverage and coverage metrics from 2020, in line with the positive sensitivities for the rating, and the sound delivery of its business plan targets for 2019.

Fitch expects EDP to sell its hydro assets for €2.2 billion by the second half of this year, and to make steady progress on its asset-rotation plan. “We forecast that prices will weaken in Iberia affecting generation earnings predominantly from 2021 when the current hedges start to roll over,” said Fitch in a press release.

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