The credit rating agency Moody’s published an updated credit opinion on Bulgarian Energy Holding EAD
In the credit opinion Moody's reports that the improved indicators of "Bulgarian Energy Holding" EAD are mainly due to the significant profit generated from the liberalised electricity market. The rating agency also points to the important contribution of gas and electricity transmission operators to the financial results of the BEH Group.
As factors positively affecting the company's credit quality the credit rating agency pointed out the good leverage metrics in combination with the moderate capital spending.
BEH EAD credit profile analysis performed by Moody’s considers as advantages the strategic importance of the company for the country’s economy and the opportunity of the company to be supported by the state as a sole owner of the capital, if necessary.
At the same time, Moody’s mentioned that the company remains exposed to political risk mainly related to involvement of the company in providing resources for financing the compensation schemes for energy sector and to regulatory risk, related to decisions of the independent regulator concerning the subsidiaries’ activities at regulated prices.
In addition, Moody’s reports the stable liquidity position of BEH and mentioned that the cash and expected accumulated cash flow are sufficient to cover the group's needs for the next 12-18 months.
The credit outlook of BEH EAD is stable and reflects Moody's view that the liberalization of the Bulgarian energy market is beneficial for BEH EAD, which contributes to improving the credit profile of the company.
According to the credit rating agency, BEH EAD will continue to maintain an optimal ratio of operating cash to debt in accordance with the requirements of the assessment.
For more information please visit: Moody's report