Karlsruhe. The internationally renowned rating agency Standard & Poor's has confirmed the long-term A-rating of EnBW Energie Baden-Württemberg AG and the short-term A-2 rating. The outlook for EnBW is now “stable”.
The rating given by Standard & Poor’s takes account of EnBW's strong position in the regional market in one of the most affluent and most diversified supply territories, significant and relatively stable results from the distribution business and high-quality and competitive business processes supported by a strong emphasis on marketing and brand management.
Besides the positive factors listed above, the change in outlook from “positive” to “stable” considers what S&P sees as uncertainty relating to the regulatory environment and the fact that EnBW's short-term growth in earnings will stem from liberalised markets. EnBW is also thought to have further opportunities for non-organic growth.
“By changing its outlook to “stable”, Standard & Poor’s is acknowledging the strong earnings power of EnBW on the one hand and its scope for further acquisitions but, as was to be expected, sees burdens that could result from changes in the regulatory environment.”, says Dr. Christian Holzherr, CFO of EnBW. “The agency has thus confirmed our own publicised estimation of the regulatory environment, without neglecting the development potential for EnBW.”
EnBW serves approximately 6 million energy customers and is the third-largest energy company in Germany. Its core business segments are electricity, gas, and energy and environmental services.