The downgrade is driven by Scope’s assessment of AEI’s continued refinancing efforts relating to its bond maturing in December 2025. Should these efforts prove unsuccessful, there is a significant risk that AEI could enter into default.

The downgrade reflects recurring loan covenant breaches due to increasing margin volatility that has weakened credit metrics. The Outlook captures the continued uncertainty on a recovery and the unresolved waivers.

The rating is supported by the issuer’s hydropower reservoir utilization and strong credit metrics. Exposure to power price volatility and limited diversification constrains the rating.

The affirmation is based on a deleveraging expected in 2025, which will be supported by robust cash flows from operations. This will help to balance the company's ambitious growth plans and increased capital expenditure expectations in the coming years.

The affirmation reflects an expected stabilisation of profitability driving deleveraging amid a multi-year capital-intensive investment programme.

The affirmation reflects the operational recovery to date and subsequent improvement in credit metrics. However, metrics and liquidity remain weak, with further improvement contingent on continued top-line growth enabled by a broader recovery in demand.

The downgrade reflects the company’s potential covenant breach, negotiations with bondholders to defer interest payments and waive default rights. The ratings are placed under review for a possible downgrade due to the immediate risk of a Default.

The affirmation is based on the company’s supportive financial risk profile despite the deterioration in operating profitability putting pressure on credit metrics.

The rating action follows the restructuring of the issuer's financial debt that had a positive effect on the liquidity profile.

The affirmation continues to reflect ÉPKAR’s sound financial position, supported by its healthy backlog.