The affirmation reflects ALTEO’s growing business outreach as it implements its investment programme while keeping its financial profile commensurate with the rating.

New issuance of senior unsecured debt does not alter ALTEO’s rating case, which largely reflects debt-financed EBITDA growth over the next few years.

The affirmation is driven by the robust cash flow stemming from the balanced mix of regulated and unregulated activities. The execution of the updated investment programme is also unlikely to significantly burden indebtedness and interest coverage.

The rating is supported by increasing cash flows from regulated power generation, the quasi-monopolistic position in heat, and comfortable level of interest coverage. Leverage is expected to decline gradually following the heavy investment phase.