Fitch rates Energo-Pro notes BB-

Fitch Ratings said it assigned Energo-Pro AS' proposed notes an expected senior unsecured BB- rating, in line with the company’s long-term issuer default rating of BB-, which has a negative outlook.

The proceeds will be used for the early repayment of €370 million notes due in December, including accrued interest and transaction-related expenses. The company will not proceed with its Turkish-projects acquisition, which was planned previously.

Fitch said the ratings reflect the company’s small size relative to other rated European utilities', cash-flow volatility, foreign-exchange exposure, operating-environment risk and key-person risk from ultimate ownership by one individual.

The ratings also incorporate increased distribution tariffs in Georgia, a supportive regulatory regime for utilities networks in Bulgaria, and geographic diversification, the agency said.

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