Fitch confirms Acciona Energía's 'BBB-' rating, with a 'stable' outlook

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The credit rating agency Fitch Ratings has reaffirmed this Thursday the long-term rating of Acciona Energía, as well as the rating of the debt instruments issued, at 'BBB-'. The long-term rating has a 'stable' outlook, according to the information sent to the National Securities Market Commission (CNMV). «We hope that Acciona Energía takes the measures necessary to manage the net leverage of its funds from operations (FFO) in line with its 'BBB-' rating, as more volatile and weaker energy prices will result in peak leverage in 2024. We see execution risk in this strategy, but the company has multiple options at its disposal, including an asset rotation plan and flexibility in capacity expansion,» highlights the agency. In addition, it details that the rating «reflects the Company's strong business profile as a globally diversified pure renewable energy provider and a moderate income predictability of around 70% of long-term incentivized and contracted production during the period 2024-2027.» He also underlines that Acciona Energía «has reaffirmed its intention to maintain an investment grade profile«, while its updated business plan «foresees reduced capacity expansion in the medium term to 1.2 GW-1.5 GW annually (up from around 2 GW previously) and a considerable asset turnover plan, all designed to safeguard investment grade credit metrics.» «We expect Acciona Energía to adopt additional measures in addition to those described in the business plan to preserve its rating in view of the sharp drop in energy prices in Spain in early 2024 and the large capital expenditure committed in 2024″, he concludes.