Fitch rates Public Power BB-

Fitch Ratings said it assigned Public Power Corp. SA a first-time long-term issuer default rating of BB-.

“The rating of PPC reflects more volatile and less transparent regulatory and operating environments in Greece than other European jurisdictions with a history of political intervention and PPC's high leverage and consistently negative free cash flow (FCF) throughout the investment cycle. It also reflects its fully integrated business structure, dominant position in the domestic market and long-term sustainability following its strategic repositioning, coupled with constructive energy reforms in Greece since 2019,” Fitch said in a press release.

The issuer rating also incorporates a one-notch uplift reflecting overall moderate links with the Greek state, including strong evidence of tangible support and moderate systemic relevance in default, the agency said.

The outlook is stable. "The stable outlook reflects our expectations of EBITDA stabilization at around €900 million on average for 2021-2023, delivery of PPC's business plan, including the accelerated phase-out of lignite, consolidation of a new wholesale market design in Greece and broadly stable funds from operations (FFO) net leverage at around 5.5x for 2021-2023,” Fitch said.

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