Moody’s affirms Bulgarian Energy

Moody's Investors Service said it affirmed Bulgarian Energy Holding EAD’s (BEH) Ba1 corporate family rating, Ba1-PD probability of default rating and the Ba2 rating assigned to its €550 million 4 7/8% senior unsecured bonds due in 2021 with a loss-given default assessment of LGD4.

The outlook is stable.

The action follows the amendments to the Bulgarian Energy Act published in the state gazette on May 8 and their subsequent incorporation in the annual regulated electricity price proposal as published on May 25.

“Following the amendments, Nationalna Elektricheska Kompania (NEK) a wholly owned subsidiary of BEH, will no longer act as a mandatory off-taker for some of the subsidized electricity generation in Bulgaria, namely renewables and co-generation, and will also no longer supply electricity for network losses at regulated prices,” Fitch said in a news release.

“As a result, NEK's public trader activities will decrease by about a quarter, approximately 5 Terawatt hours at an estimated value of around BGN 1 billion, therefore providing a permanent reduction in the company's exposure to the energy system and related financial pressure from potential system deficits if such were to occur again in the future.”

© 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.