Transelectrica: Fitch reconfirms BBB rating with stable outlook, but withdraws rating, on commercial considerations

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Bogdan Tudorache

The Fitch rating agency reconfirmed the BBB rating previously granted to Transelectrica, which was one degree above the sovereign rating (by country – that is, BBB-), lower in November, compared to May 2019 – BBB due to fiscal imbalances, according to Fitch.

“Transelectrica National Electricity Transport Company informs shareholders and stakeholders that the international credit rating agency Fitch Ratings has reconfirmed, on December 19, 2019, the long-term rating of the Company, at the level registered in 2018, respectively ‘BBB’, with a stable outlook. This credit rating opinion reflects Transelectrica’s solid business profile as a transmission and system operator, whose revenues are supported by the basis of regulated assets (BAR), as well as by the prudent and responsible approach in carrying out the operational activity. The obtained rating is one step above the sovereign rating (BBB- / stable),” is shown in the report presented to the local Stock Exchange by the company.

“At the same time, due to commercial considerations, Fitch Ratings withdraws the long-term rating granted to Transelectrica,” the statement said. Fitch claims, however, that the rating was kept at a lower level due to the effect of belonging to a state-owned shareholder by 58.7% – according to the rating agency.

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