Fitch upgrades Entega Netz

Fitch Ratings said it upgraded Entega Netz AG's long-term issuer default rating to BBB from BBB- and senior unsecured rating to BBB+ from BBB.

The outlook is stable.

The agency said the upgrade reflects expectations of the company’s sustainably improved financial leverage metrics with a projected funds from operations adjusted net leverage of around 5 times in combination with finalization of the price tariffs for gas for the third regulatory period being in line with Fitch’s forecasts.

The upgrade further reflects increased certainty over the electricity input parameters to be delivered by the Bundesnetzagentur this year providing a clear regulatory framework for Entega Netz through 2022 and 2023, the agency said.

It is also supported by a continuing credit consolidation of the wider group under Entega AG, with improving operating and stable financial profiles, Fitch added.

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