The report stated that the upgrade reflected Moody’s expectation that the company would continue to demonstrate a strong financial profile, building on its solid track record in recent years, and retain its robust credit metrics in the following years.
According to Moody's, the upgrade of the standalone credit rating is supported by HEP’s position as the vertically integrated incumbent in the Croatian electricity market, enjoying around 90% market share, its electricity generation mix, with a high share of low cost and low CO2 hydro and nuclear output, and a strong contribution from lower risk regulated electricity distribution and transmission activities, which in aggregate contribute around half of EBITDA.
'We are pleased that our continuous efforts focused on improving the management of risk as well as of the overall financial position have been recognized. By continuing a successful delivery of already started projects as well as the overall investment plans in the following period, we shall confirm our role as a frontrunner of energy transition thus providing the Croatian Government with support in the creation of conditions for a fast recovery of Croatian economy', said Frane Barbarić, the President of the Management Board of Hrvatska elektroprivreda d.d.