S&P rates Uniper BBB-

S&P said it assigned a BBB- long-term issuer credit rating to Uniper SE.

The outlook is stable.

The rating reflects the company’s fair business risk and intermediate financial risk profile, S&P said.

The rating also considers its competitive position in an environment characterized by material pressure on the profitability of European power generators, the agency said.

The market is oversupplied and prices have deteriorated, S&P said.

Although the agency said it attributes the recent decline in power prices mainly to the weakness of coal and gas prices, a fundamental reversal of this trend is not expected over the rating horizon.

The rating on Uniper, which is currently a 100% subsidiary of E.ON SE, does not include any support from the parent company, S&P said.

This is because E.ON will significantly reduce its share as part of the spin-off transaction and Uniper is not considered a strategic entity for E.ON, the agency said.

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