S&P lifts REN from junk grade

St1andard & Poor’s said it raised the long-term corporate credit rating to BBB- from BB+ on REN-Redes Energeticas Nacionais, SGPS SA.

The agency also said it raised the company’s short-term corporate credit rating to A-3 from B and the rating on its senior unsecured debt to BBB- from BB+.

The outlook is positive.

The upgrades reflect the revision of REN’s business risk to excellent from strong, reflecting the improving country-risk conditions in Portugal on the back of the country’s steady economic recovery and improving labor-market conditions, S&P said.

The improved macroeconomic conditions could help mitigate affordability concerns and support a more sustainable energy sector in the country, the agency added.

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