Rating from Moody's reflects progress of consolidation strategy at EnBW
Outlook in long-term and short-term rating upgraded from "negative" to "stable"
Karlsruhe. Internationally renowned rating agency Moody´s has upgraded the outlook in both the long-term rating and the short-term rating for EnBW Energie Baden-Württemberg AG from "negative" to "stable". This reflects the positive assessment by Moody's of the consolidation strategy at EnBW as well as of the measures implemented at the end of May/beginning of June 2004 to strengthen the company's equity base, prompting the agency to once again give EnBW an excellent credit rating. According to Moody's, EnBW has made major progress in the key goals of concentration on core business, improving the equity ratio, cost reduction and cost economy. The rating agency also recognises that the capital structure of EnBW has improved considerably as a result.
"The improved outlook in the long-term rating is highly encouraging and reflects the success of the systematic consolidation programme so far and strategic reorientation of EnBW. The fact that we have already implemented 90% of our disinvestment programme comprising a total 132 companies in terms of both sales and staffing levels meets the expectations of Moody's, as does our greatly improved earnings strength on the operating front and the substantial reduction in EnBW Group debts", says Prof. Dr. Utz Claassen, CEO of EnBW AG. "The positive rating is confirmation that we are heading in the right direction and encouragement at the same time and provides us with an added incentive to continue to pursue our current strategy systematically and with total commitment. We are also pushing ahead with our TOP FIT earnings growth programme which is geared to achieving lasting cost reduction; the measures already implemented to date during the course of 2004 will boost earnings by more than 300 million euros."
As of June 30, 2004 EnBW employed 19,500 people compared to 24,589 as of December 31, 2003 and 38,721 as of December 31, 2002. Through the efforts of this substantially streamlined workforce, the EnBW Group recorded sales 5,083.1 million euros in the first half of 2004, consolidating its position as the third largest energy company in Germany.