N.V. Eneco Beheer

Our base-case scenario also considers that the ongoing Enterprise Chamber investigation related to the mediation process between the supervisory board and the shareholders, and composition of board of management in the context of the unbundling process will have no major repercussions in the privatization process or the group's daily operations. Our understanding is that all additional renewable capacity is entitled to Green Electricity Certificates (GSC) and SDE+ subsidies in Belgium and The Netherlands, respectively, for a period ranging from 10 to 15 years, depending on the jurisdiction. We believe that such new capacity will translate into a stable source of cash flows for the group, at least over that period. The stable outlook on Eneco reflects our view of the

...S&P Global Ratings believes the ongoing privatization of N.V. Eneco Beheer (Eneco) carries some uncertainties, which will most likely dissipate by the end of the year. The 2017 unbundling process that resulted in the split of network business operations from the rest of Eneco's operations lifted the barrier to privatize Eneco. In December 2018, the company announced its decision to carry out the privatization of Eneco by means of a controlled auction. The transaction phase began in February 2019 and we understand that the pre-qualification and non-binding offer bidding phases have been completed. We expect the company to announce a potential buyer by the end of December this year, and we expect the sale process will conclude in mid or late 2020. As we have no indication about the nature of the potential buyer, there is some inherent uncertainty about the group's financial policy, and its supportiveness and commitment to the current credit rating beyond 2020. We will be able to provide an...

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