S&P ups Termoelectrica notes to BB+

Standard & Poor's said it raised its senior unsecured rating on the $200 million and $120 million notes issued on a fiduciary basis by J.P. Morgan Bank Luxembourg SA for SC Termoelectrica SA to BB+ from BB following the upgrade of the foreign currency senior unsecured rating on the Republic of Romania to BB+ from BB.

"The rating on the notes is based on the unconditional and irrevocable guarantee by the Republic of Romania of the due payment of principal and interest on the loans to the fiduciary, with the fiduciary using the proceeds of principal and interest payments from either the borrowers or guarantor to pay the notes' coupons and redemption amounts," said S&P credit analyst Konrad Reuss.

S&P said Termoelectrica is 100%-owned by the Republic of Romania (foreign currency, BB+/stable/B) and is not slated for full privatization in the near term. The company is stepping up its investment spending to boost efficiency and raise its environmental profile to EU standards.

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