S&P revises Enel view to positive

S&P said it revised the outlook on Enel SpA to positive from stable and affirmed the BBB long-term and A-2 short-term corporate credit ratings.

The agency also affirmed the BBB rating on the senior unsecured debt and the BB+ rating on the group's junior subordinated debt.

S&P said the revised outlook reflects Enel's strong operating performance in 2016 and expectations of continued sustainable growth, together with the group's strategic focus to generate positive free cash flows and reduce debt.

“Considering the steps the group has taken to simplify its structure, we see potential for an upgrade in the next six to 12 months. Specifically, we would look for adjusted FFO to debt of more than 22% on a sustained basis. (It was 21.9% at year-end 2016.),” S&P said in a news release

“We revised upward the FFO to debt guidance for an upgrade to BBB+ to 22% from 20% to better reflect the significant presence of minority shareholders in its subsidiaries, relative to peers. At year-end 2016, Enel had adjusted EBITDA of €14.5 billion and adjusted debt of €46.5 billion.”

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