Standard & Poor's upgrades NEK credit rating outlook to positive
The international rating agency Standard & Poor's has upgraded their outlook on NEK from stable to positive and affirmed their 'BB' long-term issuer credit rating on the company The enhanced outlook means the company is managing its funds and borrowings in a reliable and balanced manner. The improved outlook represents another step forward after the agency upgraded NEK's rating from BB- to BB last year due to improved credit metrics.
S&P expects the company's profitability to improve and its leverage to decline after the retail market liberalisation in 2026, which in turn could lead to a credit rating upgrade.
"The increased outlook and the expectation of a credit rating upgrade by the leading international rating agency S&P is an important success for the Bulgarian energy sector. This is the result of the consistent work and strategic support of the state. I am confident that this success will contribute to the sustainability and development of our energy system," said Energy Minister Vladimir Malinov.
S&P views NEK as a subsidiary of strategic importance to BEH, given NEK's important role in Bulgaria's energy system as a producer of emission-free hydropower, a supplier of last resort and a public electricity supplier. The rating agency also takes into account the fact that NEK has managed to transform itself from a loss-making company in a certain past period to a company that contributes nearly 10% of BEH's gross profit.