Karlsruhe. Internationally renowned rating agency Moody's has upgraded the long-term rating of EnBW Energie Baden-Württemberg AG by one notch from A3 to A2 and the short-term rating from Prime-2 to the best possible category Prime-1. Moody's has fixed the rating outlook in both the long-term rating and the short-term rating at "stable".
With this rating change, Moody's has acknowledged the improvements in the fundamental corporate and financial profile of EnBW. The rating also follows the roll-out of Moody's new rating methodology on Government Related Issuers ("GRI"), which takes into account the potential financial backup from shareholders.
In particular, Moody's gives the following reasons for the rating improvement:
- simplification of the corporate structure
- focus on core energy activities following the systematic disposal of non-core business activities
- dominant market share in the state of Baden-Wuerttemberg
- integrated value chain and
- continuous reduction in net debt
"We are pleased with the recognition of our successful restructuring programme by Moody's which is clearly reflected by the improved rating ", says Dr. Christian Holzherr, CFO of EnBW. "We have efficient internal processes in place that satisfy the requirements when it comes to controlling the financial profile of EnBW. This ensures that we meet the expectations of the capital markets in terms of the continued future success of the company", adds Holzherr.
The stable outlook reflects in particular the low business risk profile and the stable characteristics of the cash flow generated by our core operating activities. "The cost cutting measures that have already been implemented and our balanced expenditure strategy also play a decisive role", says Holzherr.
EnBW is the third largest energy company in Germany with over 5 million energy customers. In financial 2004, the company posted sales revenues of 9.8 billion euros with around 18,000 employees. EnBW´s core business activities are electricity, gas and energy and environmental-related services.