Fitch Affirms Enel and Endesa at 'A-'; Outlook Stable
14 FEB 2020 11:56 AM ET
Fitch Ratings - Milan - 14 February 2020:
Fitch Ratings has affirmed Enel S.p.A.'s and Endesa S.A.'s Long-Term Issuer Default Rating (IDR) and senior unsecured rating at 'A-'. The Outlook on the IDR is Stable. A full list of rating actions is detailed below.
The rating affirmation mainly reflects Enel's global leadership position in networks and renewables, defensive business mix with merchant activities only representing around 20% of EBITDA, broadly neutral free cash flows (before M&A) and strong record of delivery on business plans.
It also reflects the fairly weak operating environment of the country mix (largely Italy, Spain, Latam) compared with Enel's IDR and our expectation that the company will prioritise internal and external growth over deleveraging, as it is comfortable with the current funds from operations (FFO) adjusted net leverage of around 4.0x.
The rating of Endesa continues to be aligned with Enel's, due to strong links between the companies, while the rating of Latam subsidiaries is mainly based on their standalone credit profiles.