Moody’s upgrades Verbund

Moody’s Investors Service said it upgraded to A3 from Baa1 the senior unsecured ratings of Verbund AG.

The rating upgrade recognizes Verbund’s consistently strengthening financial profile, mainly on the back of higher achieved power prices. Given the supportive operating environment, Moody’s expects Verbund will be able to sustainably maintain financial metrics commensurate with an A3 rating.

In the nine months to Sept. 30, Verbund reported an increase in EBITDA of 39%. Stronger operating performance has translated into a reduction in the company’s leverage, with funds from operations/net debt exceeding 50% on the last twelve months basis.

The outlook is stable.

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