EnBW rating slips

20 April 2004 - Standard & Poor's Ratings Services (S&P) has lowered its long-term corporate credit rating on Germany based energy utility Energie Baden Wuerttemberg AG (EnBW) to 'A-' from 'A'.

S&P say that the outlook is 'stable' for EnBW but at the same time it has lowered its short-term ratings on the company to 'A-2' from 'A-1'.

"The rating actions reflect the deterioration of the company's financial profile over the last couple of years following a series of acquisitions and a formerly aggressive supply strategy," said Standard & Poor's Infrastructure Finance credit analyst Ralf Etzelmueller. "Results and credit protection measures in 2003 were negatively affected by one-off restructuring charges, a portion of which will involve a cash outlay over coming years, and continued delays to an expected capital increase."

The new management team's focus since May 2003 on controlling operating and investment costs is positive but ambitious. Despite benefits from strong minority shareholders, Electricité de France (AA-/Negative/A-1+) and OEW, a group of public sector entities, uncertainty exists regarding the company's ultimate shareholder structure. Furthermore, there have been a succession of management changes and the group's CEO has continued to undertake the CFO role nine months after the departure of the previous CFO. These factors create a degree of uncertainty about the company's future profile.

The stable outlook reflects the expectation that management will maintain its focus on cost-cutting and earnings and cash flow improvement, and includes the potential for moderate capital increases from existing owners in the short term. In the absence of any major disposals, flexibility for acquisitions is limited, in light of the high debt burden and the company's rating targets.


Sponsored by FLSmidth

Related Articles

Weekly Coal Production Report

The Weekly Coal Production Report has been updated for the week ended January 24, 2015.

Hawaii energy executives tell lawmakers plans for takeover

An official at NextEra Energy told Hawaii lawmakers that his company does not plan to lay off staff if it acquires Hawaiian Electric.

Follow Power Engineering on Twitter
Latest News
EPSA files brief with Supreme court on FERC demand response case

EPSA files brief with Supreme Court on FERC demand response case

The Electric Power Supply Association (EPSA) and a number of other parties filed a legal brie...
Southern Power, First Solar co-own California solar PV project

Southern Power, First Solar co-own California solar PV project

Southern Co. (NYSE: SO) unit, Southern Power, acquired a controlling stake in a 300-MW solar ...
EPA to opponents: Wait for the absolutely final Clean Power Plan, then attack

EPA to opponents: Wait for the absolutely final Clean Power Plan, then attack

Responding to an Aug. 13 notice of appeal from several states, including coal-reliant West Vi...
Global nuclear plant life extensions to decrease sixfold by 2025

Global nuclear plant life extensions to decrease sixfold by 2025

The capacity of nuclear power plants starting plant life extension (PLEX) programs will decre...
DOE selects eight projects to receive funding for reducing cost of CO2 capture and compression

DOE selects 8 projects to receive funding for reducing cost of CO2 capture and compression

The U.S. Department of Energy’s (DOE) National Energy Technology Laboratory (NETL) has select...
Fourth nuclear reactor in United Arab Emirates (UAE) breaks ground

Fourth nuclear reactor in United Arab Emirates (UAE) breaks ground

The Emirates Nuclear Energy Corp. (ENEC) said it began regulated construction activity relate...
Exelon announces results of 2016-17 PJM transition auction for Illinois nuclear plants

Exelon announces results of 2016-17 PJM transition auction for Illinois nuclear plants

Exelon Corporation has announced that all Illinois nuclear plants in PJM cleared in the trans...
Siemens signs contract with Thailand for 18 industrial gas turbines

Siemens signs contract with Thailand for 18 industrial gas turbines

The units -- purchased by TEC Project Services Corporation (TPS), a subsidiary of the Japanes...

Power Engineering Current Issue

01/01/2015
Volume 119, Issue 1
1501pe-cover-lg
Products Showcase
GE announces launch of latest aeroderivative gas turbine, LM6000-PF+

GE announces launch of latest aeroderivative gas turbine, LM6000-PF+

GE is launching its latest aeroderivative gas turbine, the LM6000-PF+, which employs technologies from four GE businesses, bringing power online faster and more efficiently than ever before.

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

Buyers Guide Categories

Power Industry Wire News

Nine Energy Service Acquires G 8 Oil Tool

Nine Energy Service Acquires G 8 Oil Tool

MCW Energy Group Reports on Production Progress of Its Environmentally-Friendly Oil Sands Extraction Plant in Asphalt Ridge, Utah

MCW Energy Group Reports on Production Progress of Its Environmentally-Friendly Oil San...

Global Well Completion Equipment Market to Grow at a CAGR of 11.45% by 2019: Radiant Insights, Inc

Global Well Completion Equipment Market to Grow at a CAGR of 11.45% by 2019: Radiant In...

Chemical Industry Webinar to Discuss $960 Billion in Potential Spending, an Industrial Info Event Announcement

Chemical Industry Webinar to Discuss $960 Billion in Potential Spending, an Industrial ...

Vantage Drilling Company Receives Notice of Drilling Contract Termination

Vantage Drilling Company Receives Notice of Drilling Contract Termination

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>