Moody's turns Eurogrid view to negative

Moody's Investors Service said it changed the outlook of Eurogrid GmbH to negative from stable.

“Today's change of outlook to negative from stable reflects Moody's view that the key credit metrics of Eurogrid, the owner of German electricity transmission system operator 50Hertz, could weaken below the rating agency's guidance for the existing Baa1 rating as a result of a significant increase in planned capital spending, which will be largely debt-funded,” the agency said in a press release.

The outlook revision also considers the change in Eurogrid's funding policy, which points to it now accepting a weaker credit profile, Moody’s said.

Concurrently, Moody's affirmed Eurogrid's Baa1 backed senior unsecured debt ratings. All rated debt is guaranteed by Eurogrid's subsidiaries 50Hertz Transmission GmbH and 50Hertz Offshore GmbH.

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