Rating agency Standard & Poor’s confirms “A-“ rating and “stable” outlook for EnBW

Karlsruhe. The internationally renowned rating agency Standard & Poor’s has confirmed the long-term “A-“ rating of EnBW Energie Baden-Württemberg AG (EnBW) and the short-term “A-2” rating. The outlook for EnBW remains “stable”.

The rating from Standard & Poor’s reflects EnBW’s strong market position in Baden-Württemberg, its competitive generation capacities as well as a still relevant share in the regulated business and stable cash flows.

The financial profile of EnBW, on the other hand, is only rated by Standard & Poor’s as moderate. The increasing regulatory influence in Germany is also seen as a critical factor. EnBW’s major investment program is considered ambitious.

By rating the outlook as “stable”, the rating agency assumes that EnBW will cope with the challenges facing the German energy industry. It believes that a difficult environment, coupled with EnBW’s major investment program, could have an impact on the company’s rating.

“EnBW is at the start of a growth phase with a large investment program comprising a total of 7.6 billion euros up to 2010. These capital expenditures will create value and are forward-looking. We are pleased that Standard & Poor’s shares our view of the earnings power and development potential of EnBW,” says Chief Executive Officer Hans-Peter Villis. Ingo Peter Voigt, Head of Finance/Investor Relations, adds: “The capital expenditures, including financial investments of three billion euros, are based on strict investment criteria, and we are therefore confident that we will be able to continue satisfying the high expectations of capital market players.”

EnBW is the third-largest energy company in Germany, serving approximately six million energy customers. Its core business areas are electricity, gas, and energy and environmental services.