Ratings agency Standard & Poor’s (S&P) has raised EnergyAustralia’s credit rating one notch to BBB and put the business on a positive outlook.
Alastair McKeown, EnergyAustralia Chief Financial Officer, said S&P’s upgrade reflected the ratings agency’s views of EnergyAustralia’s improved capital structure and operating performance.
“The upgrade is a great endorsement by a globally respected agency of EnergyAustralia’s approach to capital management and more broadly the progress we’re making to restore value to the business,” Mr McKeown said.
“For EnergyAustralia, an investment grade credit rating of BBB means lower borrowing costs and access to a wider funding universe,” he said.
S&P noted that following the sale of the Iona gas storage facility in late 2015 EnergyAustralia had reduced its external debt and had put in place a long-term capital management plan that supported a higher credit rating.
The agency said the positive outlook reflected its expectation that EnergyAustralia’s rating could move higher within the next couple of years if the company maintains operational stability and keeps its debt at levels targeted in its capital management plan.