S&P upgrades Engie short-term rating

S&P said it raised the short-term issuer credit ratings on Engie SA and subsidiary GIE ENGIE Alliance to A-1 from A-2 and affirmed their A- long-term ratings.

The agency also affirmed the BBB rating on ENGIE's deeply subordinated hybrid securities.

The ratings reflect the company's strategic update and reiterated focus on the three growth pillars outlined in its 2016 to 2018 strategic plan, S&P said.

The agency said it believes the group has now finished its transformation away from more volatile upstream activities and that its business model will only marginally evolve toward an asset-based multi-service utility.

The stable outlook reflects confidence that the group's credit metrics will improve with expected EBITDA growth and overall debt stabilization through 2021 due to continuous financial discipline, S&P said.

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