The rating action follows the revision of the Outlook on Romania’s Long‐Term Foreign‐Currency and Local-Currency IDRs to Negative from Stable on 17 December 2024. The revision of the sovereign rating Outlook to Negative from Stable results in the same revision for Nuclearelectrica’s Outlook, as per the report.
SNN’s rating factors remain similar to those of the BBB- rating, namely, the strong market position as the sole producer of nuclear energy, covering about 20% of Romania’s consumption needs and a strong operational history; the solid level of profitability, with similar outlook for the period 2024-2028; major investment plans; involvement in medium-term investment projects with reference to the Units 3 and 4 Project, the Unit 1 Refurbishment Project and the SMR Project; the solid relationship with the Romanian State, implicitly the solid shareholding links, the report reads.
Nuclearelectrica reported a net profit of RON1.28 billion for January-September 2024 period, down 35% year-over-year, and operating revenue of RON3.39 billion, down 40% year-over-year.
The company is valued on the stock market at RON12.3 billion and is 82.5%-owned by the Romanian State, through the ministry of energy. Its shares have traded down 16.3% so far in 2024, amid deals worth RON394.4 million, as per stock market data.