Czech-registered, privately-owned energy multi-utility ENERGO-PRO a.s. is considering issuing a bond to refinance its existing debt. We base our rating on the company on the 'bb-' group credit profile for DKHI (owned by Mr. Jaromir Tesar) and view ENERGO-PRO as a core subsidiary of DKHI. ENERGO-PRO has a cost-efficient hydropower asset base and manageable leverage, which is offset by country risk in Georgia, Bulgaria, and Turkey where regulatory systems are still evolving, and our expectation of heavy capital expenditure (capex) on new asset construction in Turkey. We are therefore assigning our preliminary 'BB-' long-term corporate credit rating to ENERGO-PRO. The stable outlook reflects our expectation of funds from operations to debt improving above 20% in 2018-2019, heavy capex in Turkey,
