S&P upgrades Edison’s long term rating to BBB- from BB+ and confirms the stable outlook. The company is investment grade.

The rating agency has also raised its short term credit rating to "A-3" from "B".

Milan, 19 June 2018 – Edison informs that today its rating has been upgraded to investment grade by Standard&Poor’s. The agency raised the long-term credit rating on Edison to "BBB-" from "BB+" and the short-term credit rating to "A-3" from "B". The outlook is Stable.

S&P explains that the upgrade of Edison’s long-term credit rating reflects the company’s strong operating performance and the strengthening of its financial profile in 2017. The international agency also views favorably Edison strategic focus on renewable energy and downstream operations (sales to final customers and energy efficiency services).

The recent acquisition of Gas Natural’s Italian retail assets and the binding agreement to acquire a majority stake in Zephyro, are concrete demonstration of this repositioning towards the final market and pave the way to the development of synergies with Edison’s gas midstream activities.

S&P’s rating on Edison is supported by its leading market position in power and gas, diversified power generation fleet, critical size and diversification in gas sourcing and its full integration into EDF Group. These strengths are partly offset by Edison’s average size, below average and relatively volatile profitability, diversification in E&P, considered to be more risky, as well as uncertain regulatory and market conditions in Italy.

Edison’s "BBB-" rating is attributed on the basis of the stand alone creditworthiness of the company, with no rating upside deriving from its parent EDF.

The Stable outlook reflects S&P’s expectation that Edison will continue benefitting from sustainable operating cash flows, stemming from gas supply contracts more aligned to the market, an efficient generation fleet and increasing contribution from renewables. According to Standard&Poor’s, Edison has flexibility for its strategic development both through acquisitions and through organic growth.

Attached the full text of S&P’s press release circulated on June 19, 2018.