Fitch upgrades Energia

Fitch Ratings said it upgraded Energia Group Ltd.'s long-term issuer default rating to BB from BB-. The agency affirmed the group’s super senior revolver at BBB- and the BB+ senior secured note ratings of its senior secured notes.

“The rating upgrade reflects Energia's sustainably strong leverage metrics now supported by a more conservative financial policy. It also reflects progress with its data center project, which includes a long-term contracted lease agreement and corporate power purchase agreement (PPA), supporting cash flow visibility,” Fitch said in a statement.

The agency noted “Energia's funds from operations (FFO) net leverage improved to 0.5x in FY23 (2.5x in FY22), on increased EBITDA and dividends from project subsidiaries. This was driven by higher utilization of its Huntstown power plants and high average power prices in FY23, improving revenues for both the renewable PPA and flexible generation business.”

The outlook is stable.

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