Fitch revises REN view to stable

Fitch Ratings said it revised REN - Redes Energeticas Nacionais, SGPS, SA's outlook to to stable from negative and affirmed the issuer and senior unsecured ratings at BBB.

“The revision of the outlook mainly reflects a fairly supportive business plan to 2024, including cash-flow beneficial direct agreements with solar developers that mitigate financial pressure from higher gross capex. It also reflects a lower rate of return assumed for upcoming regulatory resets for electricity and gas, decreasing level of tariff deviations (TD) stock and our updated scenario for sovereign yields and interest rates. We expect sustained improved funds from operations (FFO) net leverage to below the negative sensitivities for the BBB rating from 2023,” Fitch said in a press release.

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