Research Update: Integrated Utility CI-Energies Upgraded To 'B+' On Similar Action On Cote d'Ivoire; Outlook Positive

On Oct. 18, 2024, Cote d'Ivoire was upgraded to 'BB' from 'BB-' on declining budget deficits and its supportive membership of the West African Economic and Monetary Union (WAEMU). We continue to see an extremely high likelihood that the government of Cote d'Ivoire will support integrated power provider CI-Energies in case of distress, notably demonstrated by discussions on potential restructuring of the energy market and debt deconsolidation for CI Energies. These factors translate into three notches of uplift from our 'ccc+' assessment of CI-Energies' stand-alone credit profile (SACP), leading us to raise our ratings on CI-Energies to 'B+' from 'B'. The positive outlook indicates our view that the expected energy market reform, to be announced in the next 12 months,

...- On Oct. 18, 2024, Cote d'Ivoire was upgraded to '##' from '##-' on declining budget deficits and its supportive membership of the West African Economic and Monetary Union (WAEMU). - We continue to see an extremely high likelihood that the government of Cote d'Ivoire will support integrated power provider CI-Energies in case of distress, notably demonstrated by discussions on potential restructuring of the energy market and debt deconsolidation for CI Energies. - These factors translate into three notches of uplift from our '###+' assessment of CI-Energies' stand-alone credit profile (SACP), leading us to raise our ratings on CI-Energies to 'B+' from 'B'. - The positive outlook indicates our view that the expected energy market reform, to be announced in the next 12 months, will lead to lower financial debt for CI-Energies, with potentially some debt representing proceeds from state borrowings (about 70% of CI-Energies' consolidated debt) being transferred back to the state....

Research Update