Research Update: Eneco Beheer Upgraded To 'A-' On Potential Support From New Majority Shareholder Mitsubishi Corp; Outlook Stable

On March 25, 2020, Eneco Groep, the parent of N.V. Eneco Beheer, announced that the consortium led by Mitsubishi Corp had completed its acquisition of a 100% of the Dutch integrated utility company. We believe the group will benefit from extraordinary financial support from Mitsubishi, if needed, given the company's relevance for the wider group's long-term strategy. We are therefore raising our long-term issuer credit rating on N.V. Eneco Beheer to 'A-' from 'BBB+', and affirming the short-term rating at 'A-2'. We are removing the long- and short-term ratings from CreditWatch positive, where we had placed them on Dec. 4, 2019. The stable outlook mirrors that of Mitsubishi, and captures our expectation that the group's new shareholders will adopt a

...- On March 25, 2020, Eneco Groep, the parent of N.V. Eneco Beheer, announced that the consortium led by Mitsubishi Corp had completed its acquisition of a 100% of the Dutch integrated utility company. - We believe the group will benefit from extraordinary financial support from Mitsubishi, if needed, given the company's relevance for the wider group's long-term strategy. - We are therefore raising our long-term issuer credit rating on N.V. Eneco Beheer to 'A-' from '###+', and affirming the short-term rating at 'A-2'. We are removing the long- and short-term ratings from CreditWatch positive, where we had placed them on Dec. 4, 2019. - The stable outlook mirrors that of Mitsubishi, and captures our expectation that the group's new shareholders will adopt a conservative financial policy, solidifying our assumption of continued funds from operations (FFO) to debt above 50% over the next two years....

Research Update