S&P elevates Verbund

S&P said it raised its issuer credit rating on Verbund AG to A- from BBB+. The outlook is stable.

At the same time, the agency raised the rating on the company's senior unsecured debt to A- from BBB+.

“The upgrade is primarily the result of the positive impact of further recovery in power prices in combination with continuous deleveraging, strengthening the company's credit metrics beyond expectations,” S&P said in a news release.

“We now expect a ratio of FFO to debt of over 25% in 2018, increasing further to over 30% in 2019. We therefore assess Verbund's financial risk profile as intermediate, compared with significant previously.”

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