Moody's flags Enel for possible downgrade

16th December 2010, Comments 0 comments

Ratings agency Moody's on Thursday said it had put the ratings of Enel and its Spanish subsidiary Endesa on review for possible downgrade because of the Italian electricity giant's high debt levels.

"The rating actions are triggered by the sustained high levels of debt that constrain Enel's financial performance," the agency said in a statement.

Moody's last year assigned a negative outlook to Enel and Endesa's ratings after Enel bought a final 25-percent stake in the Spanish group.

"The Enel group remains exposed to heightened financial and regulatory risks," it added, pointing to Endesa's tariff deficit and the "reluctance" of the Spanish government to move towards fully cost-reflective tariffs.

Moody's "has today placed the senior unsecured A2/Prime-1 ratings of Enel and guaranteed subsidiaries on review for possible downgrade" along with the A3 ratings of Endesa, which is 92-percent owned by Enel, the agency said.

Enel's consolidated unadjusted net debt was around 63 billion euros (83 billion dollars) as of September this year, Moody's said.

© 2010 AFP

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