Announcements

    Drinks

      Scope updates its European Utilities Rating Methodology
      FRIDAY, 17/03/2023 - Scope Ratings GmbH
      Download PDF

      Scope updates its European Utilities Rating Methodology

      The methodology is now final following a call-for-comments period and will apply to all issuer and debt ratings of corporates in the sector. The application of the methodology will likely have a positive impact on a limited number of outstanding ratings.

      The update of the methodology will have a positive impact on a small number of issuer and debt ratings in scope of the methodology.

      Besides editorial changes, with this update Scope

      • extended the scope of the methodology to renewable energy corporates, such as independent power producers, and subsequently withdrew the Renewable Energy Corporates Rating Methodology;
         
      • extended guidance on the assessment of business risk profiles;
         
      • introduced new rating factors used for the assessment of a utility’s business risk profile, i.e. measuring a recurring level of power generation and measuring a return on capital employed as well as assessing the quality of a power generation fleet and the position in the merit order for electricity-generating utilities;
         
      • recalibrated the thresholds for leverage and debt protection and their extension to the ‘AA and above’ and ‘CCC and below’ categories;
         
      • recalibrated the rating ranges for the qualitative assessment of a utility’s capex coverage;
         
      • provided further guidance on Scope’s view on the debt exposure to asset retirement obligations, margining deposits and non-recourse debt;
         
      • added an appendix providing more detail on the criteria of notching when applying the bottom-up approach of Scope’s Government Related Entities Rating Methodology.

      Scope did not receive comments from market participants during the request-for-comments period, which expired on 17 February 2023.

      Download the updated methodology here or on www.scoperatings.com.

      Related news

      Show all
      Scope affirms BB- issuer rating on GVC, revises Outlook to Positive

      25/7/2024 Rating announcement

      Scope affirms BB- issuer rating on GVC, revises Outlook to ...

      European corporate ESG bonds boom in H1 2024; FY issuance projected to rise 40%

      24/7/2024 Research

      European corporate ESG bonds boom in H1 2024; FY issuance ...

      Scope affirms Market Építő Zrt.’s BB-/Stable issuer rating

      19/7/2024 Rating announcement

      Scope affirms Market Építő Zrt.’s BB-/Stable issuer rating

      Scope affirms Encavis AG's BBB- issuer rating and revises the Outlook to Stable

      19/7/2024 Rating announcement

      Scope affirms Encavis AG's BBB- issuer rating and revises the ...

      Scope affirms SBB’s ratings and resolves the under review status

      12/7/2024 Rating announcement

      Scope affirms SBB’s ratings and resolves the under review status

      Scope publishes Michelin’s A/Stable issuer rating for the first time

      12/7/2024 Rating announcement

      Scope publishes Michelin’s A/Stable issuer rating for the ...