S&P raises PPC’s credit rating to B- from CCC+

Standard & Poor’s raised Public Power Corporation’s (PPC) credit rating to B- from CCC+ with a stable outlook, following a decision to raise the Hellenic Republic’s credit rating.

PPC, in an announcement, expressed its satisfaction over this development and noted that in a report S&P acknowledged that measures taken by the government and PPC’s management were expected to reverse the negative course of the last 18 months and to significantly improve the weak financial performance of this period.

S&P said a decision to raise PPC’s credit rating was based on a decision to raise electricity prices (neutral for consumers) and the abolition of NOME auctions (for electricity). The credit rating agency said these measures were expected to significantly improve PPC’s operating profitability and to lower the utility’s net borrowing/EBITDA ratio.

S&P also welcomed a government’s decision to decouple from the use of lignite from 2028 and noted that any progress in a transformation process of PPC would be a criterion for any further upgrading in the future.