DBRS gives A(low) to ZSE

DBRS said it assigned an A(low) issuer rating of with a stable trend to Zapadoslovenska energetika, as (ZSE).

The rating is supported by ZSE’s place as the largest distributor system in Slovakia, its regulated activities, which account for about 90% of total EBITDA, its predictable and stable cash flow and the implicit support from the Slovak Republic, the agency explained.

However, DBRS noted that constraining the rating is ZSE’s limited geographical footprint, high energy price volatility for its non-regulated business, generous dividends and operational risk.

The stable trend reflects the view that ZSE´s key financial metrics will remain supportive of an A(low) threshold for the foreseeable future.

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