EnBW also retains Moody's rating in the A category

Karlsruhe. The internationally renowned rating agency Moody's has once again set the credit rating of EnBW Energie Baden-Württemberg AG at a high level. The long-term A2 rating remained unchanged, but the outlook has been changed from "stable" to "negative". According to Moody's, the change in the outlook rating reflects EnBW's weakened financial profile arising from M&A activities in 2002 and the investment in the competitive "Yello" electricity brand for private customers. The short-term rating is unchanged at Prime-1.

"The confirmation of the A2 rating is an incentive for EnBW to systematically pursue the strategy of consolidation that was recently implemented. As part of this process, EnBW intends to strengthen its financial profile and to bring it back into line with the accustomed standard", Dr. Balzereit explained. "The key measures in this direction include the Group-wide TOP FIT earnings growth program, a reduction in the complexity of the Group organisation, and the logical structuring of all business areas on the basis of their respective value contributions under the umbrella of an operational holding company. These measures will enable EnBW to achieve long-term improvement in its key cash flow ratios."

Moody's rating for EnBW in the A category is based on the Group's strong regional presence within the German electricity sector (80 percent market share in Baden-Wuerttemberg and 10 percent share in Germany), a flexible and relatively cost-competitive generation asset base, and a well-maintained distribution network generating strong cash flows.