Fitch Ratings Affirms Bulgarian Energy Holding at 'BB+', Outlook Stable

Fitch Ratings Affirms Bulgarian Energy Holding at 'BB+', Outlook Stable

Fitch Ratings said it has affirmed the Bulgarian Energy Holding's (BEH) long-term foreign currency issuer default rating (IDR) and long-term local currency IDR at 'BB+' with a stable outlook.

BEH's 500 million euro ($695 million) bond has been affirmed at foreign currency senior unsecured rating 'BB+', the agency said in a statement.

"The ratings reflect BEH's and its 100%-owned subsidiaries' (BEH group) dominant position in the country's electricity and gas markets, and its strong links with the Bulgarian state (BBB-/Stable), mainly evidenced by state guarantees for about 30% of the group's debt and strong operational and strategic ties," Fitch Ratings also said in its statement. "The ratings also incorporate the weakness of the Bulgarian regulatory framework despite some recent improvements in relation to BEH, corporate governance limitations and the group's large capex plan for 2013-2017 that will likely increase its financial leverage."

"The rating for the unsecured bonds of BEH reflects our view that the structural subordination of the holding company's creditors to the external creditors lending directly to its operating companies is mitigated by the increased share of the holding company's debt in total debt and the low ratio of prior-ranking debt (the debt of subsidiaries who do not guarantee BEH) to consolidated EBITDA," Fitch added.

Previous Next
Test Caption
Test Description goes like this
Cookies Preferences
Choose Type of Cookies You Accept Using

These cookies are required for the website to run and cannot be switched off. Such cookie are only set in response to actions made by you such as language, currency, login session, privacy preferences. You can set your browser to block these cookies but our site may not work then.

These cookies allow us to measure visitors traffic and see traffic sources by collecting information in data sets. They also help us understand which products and actions are more popular than others.

These cookies are usually set by our marketing and advertising partners. They may be used by them to build a profile of your interest and later show you relevant ads. If you do not allow these cookies you will not experience targeted ads for your interests.