The Group’s business profile is considered to be solid, relatively resilient to the COVID-19 outbreak and related economic shock, in particular due to the significant share of the distribution segment in EBITDA.

In September 2019, Electrica Group obtained the issuer corporate rating of BBB (Investment Grade), with a stable outlook, from the rating agency Fitch Ratings. Following the revision of Romania’s rating Outlook to Negative from Stable, mainly as a result of the implications from COVID-19 pandemic, Electrica rating’s outlook has been also revised to Negative from Stable as in Fitch’s view, the Company’s rating should be capped at one notch above the one of the Romanian state, the largest shareholder.

The confirmation of the BBB rating continues to reflect Electrica Group’s solid financial profile, adequate liquidity, low leverage level, as well as the leading position both on the electricity distribution and regulated supply segments. The Group’s business profile is considered to be solid, relatively resilient to the COVID-19 outbreak and related economic shock, in particular due to the significant share of the distribution segment in EBITDA.

The company notes that any revision of the Outlook of the Romanian sovereign rating back to Stable would result in a similar action for Electrica’s rating.