Moody's upgraded its outlook on HEP from negative to stable

Moody's affirmed today its long-term rating on Hrvatska elektroprivreda (Ba2) and upgraded its outlook on HEP from negative to stable. Both world leading credit rating agencies (Standard & Poor's and Moody's) have thus upgraded their outlooks on HEP in the last four months.

In light of the methodology and criteria used by Moody's on rating HEP, the outlook upgrade reflects the sovereign rating upgrade, which is the first positive trend on sovereign rating made by Moody's in the last nine years. According to Moody's, the outlook upgrade is the result of a faster mid-term growth of the Croatian economy than expected following the end of the six-year recession in 2015.

'We are extremely pleased with the outlook upgrade from negative to stable and the affirmation of the long-term rating on HEP by Moody's. We will continue active corporate governance of HEP Group's financial position and its overall business operations', said Tomislav Rosandić, a member of the Management Board of Hrvatska elektroprivreda d.d.

To repeat, in late October 2016, Standard & Poor's (S&P) upgraded its stand-alone corporate rating on Hrvatska elektroprivreda to BB from BB- as well as the overall rating on HEP from BB- to BB. The report stated that the main reason for said rating upgrade was strengthened liquidity as well as HEP's very strong credit parametres due to which the liquidity assessment was upgraded, in Standard & Poor's terms, from less than adequate to adequate. In December 2016, S&P also affirmed the long-term credit rating on HEP(BB) and upgraded the outlook from negative to stable following the sovereign rating outlook upgrade.