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1012302600000 | IR Press Release

Rating agencies acknowledge the strong market position of EnBW

Renewed A+ rating from Standard & Poor's / Moody's gives an A2 rating for the first time
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Dr. Reinhard Volk "Standard & Poor's and Moody's ratings confirm the financial policy and growth strategy of EnBW".

Karlsruhe. The internationally reputed rating agencies, Standard & Poor's and Moody's, have given a high evaluation to the credit-worthiness of EnBW Energie Baden-Württemberg AG. Standard & Poor's has renewed its first rating of December 2000 with a long-term A+/stable (short-term rating A-1). In its first rating, Moody's has evaluated EnBW AG with a long-term A2 (short-term rating Prime-1). Both rating agencies herewith acknowledged the strong position of EnBW in the energy market and evaluate the outlook for the future development of the third-largest German energy enterprise as "stable". As a reaction to the publication of these ratings, Dr. Reinhard Volk, the Finance Director of EnBW, declares that "We see ourselves confirmed in our consequent growth strategy and solid financial policy".

In its evaluation, Standard & Poor's comes to the conclusion that "The EnBW rating reflects the strong market position of the company in the energy sector, its strong regional market position, the comprehensive activities in an attractive service environment, and its solid financial profile." In this connection, Standard & Poor's refers to the 80 % market share held by EnBW in the federal state of Baden-Württemberg, economically one of the strongest regions of Europe. This position has been strengthened further, through the acquisition of local energy companies.

According to Moody's, this rating is especially justified through the "strong regional presence of EnBW and its self-imposed policy of financial solidity". Based on the investment activities of EnBW, Moody's expects that total debt will continue to rise until 2003, which is already reflected in the A2 rating. Furthermore, the enterprise has obliged itself to the maintenance of its solid financial profile in the future, which is in accordance with a single A-rating.

Standard & Poor's, too, describes the financial profile of EnBW as strong. The rating agency refers to the relatively low level of indebtedness and expects that EnBW will assert its "strong market position", whereby stable income, derived from the electricity network, and a strong end-user base, deliver substantial contributions to profit and cash-flow.

EnBW: the enterprise

Energie Baden Württemberg AG (EnBW) is the third-largest energy company in Germany, one of the most strongly liberalized markets in Europe. Furthermore, EnBW is active in the segments waste management and industrial services. In the European markets, too, the enterprise is very active and co-operates with renowned partners. EnBW realized a turnover of € 7.8 b in 2001 (previous year € 5.8 b). The group is active in 12 countries and employs 44,500 staff members. Group sales of electricity amounted to 97.3 terawatt hours in 2001. EnBW disposes over an energy plant capacity of approximately 13,500 MW.

The EnBW share is listed on the stock exchanges in Frankfurt and Stuttgart. Major shareholders are the German Regional Corporate Association (OEW), with 34.5 %, and Electricité de France (EDF), also with 34.5 %.

After the liberalization of the German energy market, which became effective in 1998, EnBW was the first enterprise to build up a business and sales structure, for the delivery of energy throughout Germany.

EnBW has 4.2 million customers in Germany. The EnBW subsidiary, Yello Strom GmbH., has been able to win 700,000 new private customers throughout Germany, within a period of only two-and-one-half years.

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Corporate Communications
EnBW Energie Baden-Württemberg AG
Durlacher Allee 93
76131 Karlsruhe
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