S&P revises Enel, Endesa to positive

Standard & Poor's said it revised its outlook on Enel SpA and its main subsidiary Endesa SA to positive from stable.

At the same time, the agency affirmed Enel’s and Endesa’s BBB/A-2 long- and short-term corporate credit ratings. It also affirmed the BBB issue rating on Enel's senior unsecured debt and BB+ issue rating on its junior subordinated debt.

S&P said the outlook revision reflects its view that Enel's credit metrics could improve over the forecast horizon for 2015-2017, including adjusted funds from operations (FFO) to debt exceeding 20%, compared with previous projection of about 18%.

The agency believes that the group has been exceptionally resilient to the adverse economic and regulatory challenges in its two main mature markets, Italy and Spain.

Enel's resilience is due, in S&P’s opinion, to the variety of strategic options available to the group to capture growth opportunities and to deleverage in a challenging environment. These options include its asset disposal strategy, the rationalization of operating costs, the flexibility on capital expenditure and the optimization of its debt and cash management.

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