Fitch applies BB- to EN+

Fitch Ratings said it assigned EN+ Group plc (EN+) a long-term foreign-currency issuer default rating of BB- with stable outlook.

EN+ operates two business segments including aluminum production through United Co. Rusal plc (BB-/stable) and power generation and distribution primarily through a 100% indirect power subsidiary JSC Eurosibenergo.

Fitch said EN+'s BB- currency issuer default rating is based on the deconsolidation of Rusal, in which EN+ owned 48.13% at end-1H17 (the share will increase to 56.88% following conversion of certain minority stakes in Rusal for stakes in EN+ Group plc), representing EN+'s energy segment.

“The rating is underpinned by the market position of EN+ as one of the largest power generation companies in Russia responsible for about 8% of total installed capacity, its low-cost hydro generating facilities, which enhances group profitability compared with thermal generators, and vertical integration,” the agency said in a news release.

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