On 30 October 2020, the rating agency Creditreform Rating AG (‘Creditreform’) affirmed the A+ rating of Fluvius System Operator cv (‘Fluvius’), but changed its rating outlook from stable to negative.
The outlook change is based on Creditreform’s assessment that, following the Flemish energy regulator VREG’s implementation of the 2021-2024 tariff methodology for electricity & gas distribution, Fluvius will see its revenues and cash-flows decline and its credit risk position possibly deteriorate following further indebtedness linked to necessary investments and debt refinancing. However, the rating remains supported by a solid financial position and a good access to capital markets model. The company has also demonstrated short-term agility during the corona crisis.
Fluvius’s management – in consultation with its shareholders – remains committed to deliver high-quality, cost efficient and future-proof utility services to the Flemish region. Its A+ rating at Creditreform once again underlines the company’s robust credit profile. Fluvius remains unambiguously focused on maintaining a solid investment grade rating.
The report by Creditreform can be accessed here: https://creditreform-rating.de/