S&P endorses Enemalta turnaround.
Standard & Poor’s decision to upgrade Enemalta’s credit rating for the fourth time in three years encourages the Company’s management and employees to maintain their commitment to achieve long-term financial sustainability.
On Monday evening, Standard & Poor’s (S&P) upgraded Enemalta’s credit rating from B+ to BB- and elevated its stand-alone credit profile to B-, up from CCC+ last year. “We believe that Enemalta’s restructuring efforts are delivering improvements in cost structure earlier than expected,” S&P explained.
Enemalta welcomes S&P’s analysis, which endorses the ongoing measures to transform the Company into a sustainable organisation. Amongst other achievements, S&P refers to the ongoing investment in a more efficient electricity generation mix and an improved level of liquidity to fund its operations.
The elevation of the Company’s stand-alone credit profile to the B category is a very significant development. It confirms Enemalta’s efforts to reduce its dependency on government support. Until a few years ago, S&P itself warned that Enemalta’s excessive reliance on government-supported loans was a major threat to the Maltese economy.
Ing. Fredrick Azzopardi, Enemalta’s Executive Chairman, expressed the company’s satisfaction at this development. He thanked Enemalta’s employees, customers and other stakeholders for contributing to this unprecedented turnaround. “The review presented by S&P confirms that we are heading in the right direction in our effort to secure the future of Enemalta and of the electricity services we offer in the Maltese Islands. We are glad to note that rating agencies that had repeatedly criticised Enemalta’s performance in the past are now considering our Company with a more positive outlook.”
However, Ing. Azzopardi added, this result is no grounds for complacency. “We are currently investing in multi-million projects to upgrade the national grid and reduce the frequency and duration of electricity supply interruptions. Along with our strategic partners, we are introducing a new electricity generation mix based on cleaner, more efficient resources. We are also taking several measures to streamline our administrative operations and improve the quality of services to our customers.”
“We aim to continue working to achieve our principal sustainability targets. An Enemalta that is profitable and viable is an Enemalta that can generate the required resources to maintain, secure and develop the necessary electricity generation and distribution infrastructure with minimal impact on the environment, whilst providing a high quality service at affordable, stable rates to its customers.”