S&P upgrades HEP

S&P said it raised the long-term issuer credit and issue ratings on Hrvatska Elektroprivreda dd (HEP) to BB+ from BB.

The agency also said it raised the long-term issue rating on the company's senior unsecured debt to BB+ from BB.

The outlook is stable.

The upgrade follows the upgrade of Croatia to BBB- from BB+ and a belief that the government now has an increased capacity to support state-owned multi-utility if needed, S&P explained.

The stable outlook mirrors that on the sovereign and reflects an expectation that HEP's stand-alone performance will be solid with funds from operations-to-debt at higher than 60% in the next 12 months, S&P said.

HEP plays a very important role for the Croatian government because its transmission and distribution operations are crucial for the security of the country's energy supply, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.