Scope Ratings GmbH (Scope) has today published its updated European Utilities Rating Methodology. The update provides a detailed presentation of Scope’s analytical approach for assigning credit ratings to utilities. The application of this methodology will not trigger any rating changes.

The updated methodology can be downloaded here or on www.scoperatings.com.

Key changes

Besides editorial changes, the conducted updates are as follows:

• Alignment of the industry risk matrix to the General Corporate Rating Methodology, leading to a change of the underlying industry risk profile for regulated power generation to A from AA;
   
• Clarification of how we assess a utility’s cash flow generation and its internal financing capacity and dependence on external funding/financing;
   
• Alignment of the possible up-notching pertaining to a utility’s status as a government-related entity with Scope’s updated GRE rating methodology.

Scope invited market participants to comment on the proposed methodology by 15 April 2024. Scope has not received comments from market participants.