S&P lifts Red Electrica

Standard & Poor’s said it raised the long-term ratings on Red Electrica Corporacion and its subsidiary, Red Electrica Espana, to BBB+ from BBB.

The agency also said it affirmed Red Electrica Corporacion’s A-2 short-term rating.

The outlook is stable.

The upgrade reflects a review of the group’s recently announced strategy and financial policy, S&P said, and positive views on the Spanish electricity reforms, which increase the predictability of the group’s earnings, S&P said.

The company’s strong business risk profile reflects the monopolistic position conferred by the regulatory regime overseeing the group’s TSO functions in Spain, the agency said.

S&P also said it values positively the group’s robust operating performance, world-class renewable energy management, tight grip on controllable costs and track record of realizing capital expenditures on budget and on time.

© 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.