S&P Upgrades Bulgaria's NEK to 'B+'; Outlook Stable
S&P Global Ratings said on Thursday that it has raised its long-term issuer credit rating on Bulgaria's National Electricity Company, NEK, to 'B+' from 'B' with stable outlook.
"In our view, thanks to improved credit metrics reported in 2017 and improved liquidity, Bulgarian Energy Holding (BEH) has increased its ability to support its subsidiaries," S&P said in a statement.
In June and July 2018, BEH issued a total of €550 million in Eurobonds to refinance the €500 million bonds maturing in November 2018.
The stable outlook reflects S&P's view that, despite the company's high leverage, ongoing regulatory reforms and continuing payments from the electricity fund will enable NEK to demonstrate sustainable positive EBITDA, and BEH will remain able and willing to support NEK's liquidity, the ratings agency said.