Fitch reviews RWE

Fitch Ratings said it placed RWE AG's BBB long-term issuer default rating, BBB senior unsecured rating and BB+ subordinated note rating on rating watch evolving.

The short-term issuer default rating of F3 was placed on rating watch positive.

Fitch said the actions follow the planned sale of RWE's 76.8% stake in innogy SE (BBB+/rating watch negative) to E.ON SE (BBB+/ rating watch negative) through an exchange of assets and participations.

As part of the transaction, RWE will receive both E.ON's and innogy's renewables portfolios, as well as a 16.7% stake in E.ON along with some smaller assets such as minority stakes in Austrian utility KELAG and innogy's storage business.

Fitch said the evolving watch reflects the uncertainty over the financial impact of the announced transaction and the new financial and investment policies to be implemented by RWE once its new business profile is established.

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