HR

Moodys confirms existing HEPs ratings

17.05.2013.
After downgrading Croatia's rating in early February, Moody's has placed Hrvatska elektroprivreda's rating on a Credit Watch list with the possibility of its downgrade.

After conducting its analyses, Moody's confirmed the existing Ba2 ratings with a negative outlook in the announcement issued on May 15.

Moody's analysts emphasize that the rating confirmation of Ba2 follows a stabilisation in the company's operational performance and the steps it has taken to reform liquidity policy. It has been emphasized that the company is, and is exptected to remain, in compliance with financial covenants.

Analysts believe that the changed hydrological conditions and a year-long effect of the 2012 price increase will result in improved financial position in 2013, which should enable HEP to meet the guidance for its current rating and comply with its financial covenants.

Furthermore, successful realization and redefinition of short-term lines expiring in 2nd and 3rd quarter of 2013 as well as continuously improved operations in 2013 will enable further rating stabilisations, said the analysts.