S&P changes NEK outlook to developing

Standard & Poor's said it revised its outlook on Bulgaria-based Natsionalna Elektricheska Kompania EAD ("NEK") to developing from stable and affirmed the company's BB long-term corporate credit rating.

The outlook revision is due to the uncertainty over the company's planned restructuring, which is planned ahead of Bulgaria's entry into the European Union. S&P said the outcome is unclear at this point in time.

The agency said the ratings reflect NEK's exposure to Bulgaria's still-weak transition economy environment, the short operating track record of the company and of the national regulator and NEK's significant, partly debt-funded investment requirements.

These factors are mitigated by NEK's strong business position and its strategic importance as the state-owned monopoly electricity transmission grid operator and electricity exporter in Bulgaria, the agency said. The ratings also benefit from a currently supportive regulatory environment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.