Fitch affirms RWE

Fitch Ratings said it affirmed RWE AG's long-term issuer default rating at A+, senior unsecured at AA- and short-term issuer default rating at F1 following its proposed acquisition of Essent NV for €9.3 billion.

The outlook remains negative.

Fitch noted the acquisition will help to improve RWE's geographical diversification and reduce its dependence on the German market, in line with its strategic goal to increase the operating profit share of foreign markets.

Pro-forma consolidated net debt-to-EBITDA ratio at end of 2008 is about 1.4x, the agency said, which compares well with peers in the A+ rating category.

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