“Concurrently, Moody’s has placed the company’s ratings on review for further downgrade,” the agency said Wednesday in a press release.
“The downgrade of Transelectrica’s ratings to Ba1 from Baa3 reflects the downward revision, to strong from high, of our assumption of the level of extraordinary support that Transelectrica can expect to receive from its majority owner, the Romanian government,” says Richard Miratsky, Moody’s Vice President – Senior Analyst and lead analyst for Transelectrica.
“The review for further downgrade will focus on the assessment of Transelectrica’s liquidity position that is significantly dependent on the company’s ability to continuously raise external funding in order to cover a sizeable investment plan,” Miratsky added.