Research Update: Integrated Energo-Pro Upgraded To 'BB-' On Strengthened Business Profile; Outlook Stable

We believe Energo-Pro's (EPas') business risk profile has strengthened over the years, more recently through the integration of Turkish Hydro Power Plant Alpaslan-2 and the acquisition of Spanish Xeal in 2023, as well as its record of cost recovery with minimal delays through annual tariff updates of its regulated operations in Bulgaria. We expect the company's funds from operations (FFO) to debt to stand at roughly 20% over 2024-2026, following a stabilization of power prices in Bulgaria Georgia, Spain, and Turkiye. We therefore raised our long-term issuer credit rating on EPas to 'BB-' from 'B+'. The stable outlook indicates that we expect EPas to report FFO to net debt of about 20% over 2024-2026 and to continue smoothly integrating its

...- We believe Energo-Pro's (EPas') business risk profile has strengthened over the years, more recently through the integration of Turkish Hydro Power Plant Alpaslan-2 and the acquisition of Spanish Xeal in 2023, as well as its record of cost recovery with minimal delays through annual tariff updates of its regulated operations in Bulgaria. - We expect the company's funds from operations (FFO) to debt to stand at roughly 20% over 2024-2026, following a stabilization of power prices in Bulgaria Georgia, Spain, and Turkiye. - We therefore raised our long-term issuer credit rating on EPas to '##-' from 'B+'. - The stable outlook indicates that we expect EPas to report FFO to net debt of about 20% over 2024-2026 and to continue smoothly integrating its new assets while benefitting from diversification in its generation base....

Research Update