Czech Republic-Based Electricity Producer ENERGO-PRO Affirmed At 'B+'; Outlook Stable

In the coming months, ENERGO-PRO a.s. (EPas) intends to consolidate two hydro power plants in Turkey from its immediate parent, DKHI, which will increase its EBITDA by €70 million-€90 million in 2022 but add the €280 million of debt at those plants. We think that, following the transaction, the credit quality and metrics of EPas and DKHI will be very similar on a pro forma basis, with funds from operations (FFO) to debt at 12%-20% in 2022-2023. We understand EPas is actively working on the early refinancing of its notes maturing in December 2022. We are affirming our 'B+' ratings on EPas. The stable outlook reflects our expectation that EPas' operating performance and credit metrics will remain commensurate with the

...- In the coming months, ENERGO-PRO a.s. (EPas) intends to consolidate two hydro power plants in Turkey from its immediate parent, DKHI, which will increase its EBITDA by 70 million-90 million in 2022 but add the 280 million of debt at those plants. - We think that, following the transaction, the credit quality and metrics of EPas and DKHI will be very similar on a pro forma basis, with funds from operations (FFO) to debt at 12%-20% in 2022-2023. We understand EPas is actively working on the early refinancing of its notes maturing in December 2022. - We are affirming our 'B+' ratings on EPas. - The stable outlook reflects our expectation that EPas' operating performance and credit metrics will remain commensurate with the ratings in the next two years. MOSCOW (S&P Global Ratings) Nov. 2, 2021--S&P Global Ratings today took the rating actions listed above. EPas' acquisition of Alpaslan-2 and Karakurt HPPs is largely neutral for EPas and DKHI's credit quality, in our view. This is because...

Ratings Action