Enel CFO Says Effect "Marginal" If Credit Rating Cut To BBB+
08 March 2012 - 10:20PM
Dow Jones News
Enel SpA (ENEL.MI) isn't concerned by the possibility of its
credit rating being downgraded by one notch, as the effects would
be "marginal," said Luigi Ferraris, chief financial officer of
Europe's most indebted utility, Thursday.
Should Enel's rating drop to BBB+ from A- then effects on the
cost of debt are estimated at between 15 and 20 basis points, said
the CFO, at a presentation in Rome of the company's new 2012-2016
growth plan.
Italy's former monopoly became Europe's most indebted utility
after taking over Spain's Endesa SA (ELE.MC) in 2007.
The debt costs of such a downgrade are calculated at about EUR50
million, said Chief Executive Fulvio Conti, indicating that is a
totally manageable figure.
The company's new dividend payout policy of 40% of ordinary net
profit, which excludes special items, is "decent," said CEO Conti.
He added it represents a dividend yield of between 4% and 5%.
-By Liam Moloney, Dow Jones Newswires; +39 06 6976 6924;
liam.moloney@dowjones.com
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