The affirmation reflects Transelectrica’s conservative balance sheet and earnings supported by Romania’s regulated asset base (RAB) regulation for electricity transmission, with the third regulatory framework running until mid-2019, Fitch said in a statement.
“The current regulatory environment stimulates investments in the network, with more than RON3 billion of investments planned by 2023, which we expect will result in increased leverage. The rating reflects Transelectrica’s standalone credit profile (SCP), but we view any upside as limited by the links to Romania (BBB-/Stable), its 58.7% shareholder, ” Fitch also said.
In June 2017, Fitch Ratings assigned Transelectrica a first-time long-term issuer default rating of ‘BBB’ with a stable outlook.
Transelectrica (TEL.RO) reported a net profit of RON98 million for the first half of 2018, unchanged from the same period last year. Its revenues dropped 29% on the year in the first half, to RON1.23 billion.
Transelectrica’s long-term debt decreased 7% in the first half, to RON633 million, while short-term debt decreased 8%, from RON1.1 billion end-December 2017 to RON1 billion end-June 2018.