Moody’s confirms innogy

Moody's Investors Service said it confirmed the Baa2 issuer and senior unsecured ratings of innogy SE and its guaranteed subsidiary, innogy Finance BV.

The Prime-2 commercial paper rating was also confirmed.

The outlook is stable.

The action concludes the review process initiated on March 14 following the announcement that RWE AG, the 76.8% owner of innogy, reached an agreement with E.ON SE over the sale of its entire stake in innogy as part of a wide-ranging exchange of assets.

Moody’s said the action reflects its expectation that innogy's financial profile will remain consistent with the guidance for the current ratings following the strategic update in March 2018 indicating a greater cost control and a more focused growth and investment strategy.

The company’s updated plans assume around €2.5 billion in net investments and execution of additional growth opportunities subject to the company's commitment to a target leverage of net debt/EBITDA of around 4 times.

innogy’s dividend policy is unchanged, with a pay-out ratio of 70-80% of adjusted net income, the agency explained.

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