Moody’s changes EWE view to stable

Moody's Investors Service said it affirmed the issuer rating and senior unsecured debt ratings of EWE AG at Baa1.

The outlook was changed to stable from negative.

Moody’s said the rating recognizes that EWE has recently managed to de-risk operating activities due to the re-negotiation of power supply and natural gas procurement contracts. Moreover, with the commissioning of major growth investments in renewable and conventional generation, capital expenditure is expected to normalize at levels of ca. €400 million from 2015 on, which is considerably below historic levels, and should thus have a positive impact on financial metrics. Nevertheless, EWE continues to evidence relatively weak financial performance in a challenging operational environment, the agency said.

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