Research Update: France-Based Energy Company ENGIE SA Outlook Revised To Stable From Negative; 'A-/A-2' Ratings Affirmed

ENGIE SA has almost completed its transformation plan to improve its business risk profile through substantial disposals in its merchant and upstream activities. We believe the group's business portfolio is becoming increasingly regulated or long-term contracted, with a large and diversified portfolio of businesses supporting increased visibility and predictability of cash flows. While 2017 and 2018 are still transition years, we are more confident that ENGIE's credit metrics will improve from 2019, with expected EBITDA growth and a slight debt reduction over 2018-2020. As a result, we are revising our outlook on the company to stable from negative. We are also affirming the 'A-/A-2' ratings. On April 30, 2018, S&P Global Ratings revised its outlook on global multi-utility ENGIE SA

...+ ENGIE SA has almost completed its transformation plan to improve its business risk profile through substantial disposals in its merchant and upstream activities. + We believe the group's business portfolio is becoming increasingly regulated or long-term contracted, with a large and diversified portfolio of businesses supporting increased visibility and predictability of cash flows. + While 2017 and 2018 are still transition years, we are more confident that ENGIE's credit metrics will improve from 2019, with expected EBITDA growth and a slight debt reduction over 2018-2020. + As a result, we are revising our outlook on the company to stable from negative. + We are also affirming the 'A-/A-2' ratings....

Research Update