Fitch puts Enel Russia on watch

Fitch Ratings said it placed PJSC Enel Russia's BB+ long-term foreign- and local-currency issuer default ratings and foreign- and local-currency senior unsecured ratings on Rating Watch negative.

The agency also affirmed the company's short-term foreign- and local-currency issuer default ratings at B.

The action follows news that the company's board voted in favor of holding an extraordinary general shareholders' meeting to approve the planned sale of its coal-fired plant, Reftinskaya GRES, to Kuzbassenergo, which is owned by Siberian Generating Co., Fitch explained.

The resolution of the watch will rely on the planned use of the sale proceeds and the company's future financial policy, as well as an assessment of its future business profile compared with peers, the agency said.

Enel Russia's business and financial profiles are likely to change following the sale, but are currently supported by its solid market position and strong financial profile, Fitch said.

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