Fitch Ratings has downgraded the Slovakia-based Slovenské elektrárne’s (SE) long-term Issuer Default Rating (IDR) and senior unsecured rating to ’BBB-’ from ’BBB’. The outlook of the rating is negative.
Fitch argues this by the increased capital expenditure and the delayed time schedule of the Mochovce nuclear power plant’s units 3 and 4 as well as weakening electricity market fundamentals in the central European region, which will likely affect SE’s operating cash flow in the coming years. Fitch Ratings also revised the outlook of the Long-term Issuer Default Rating of the Hungarian oil and gas company MOL, which is represented in Slovakia through the refinery company Slovnaft, from stable to negative.
Katarína Richterová
