S&P turns Snowy Hydro outlook to stable

S&P said it revised its outlook for Snowy Hydro Ltd. to stable from negative and affirmed its BBB+ ratings.

“The outlook revision reflects our view of increasing support from the government amid some pressure on the company's leverage. We believe the importance of Snowy Hydro in the federal government's plan for energy transition has increased. This is amid the early closure of baseload coal generation plants over the current decade. Australia's federal and state governments as well as its market operator have significantly increased their involvement in the energy transition over the past 12 months,” the agency said in a press release.

S&P said it forecasts Snowy Hydro’s EBITDA to come in at A$420 million to A$440 million in fiscal 2023 (ending June 30), up from the agency’s previous expectation of A$240 million-A$300 million.

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