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Moody's shifts view on Edison to positive on pending exit from E&P business

The business risk profile of Edison SpA would improve when the Italian energy company completes the divestment of its exploration and production unit later this year, Moody's said Sept. 19 in changing its rating outlook to positive from stable.

The sale of the E&P business would reduce the company's net debt by $750 million this year, Moody's said in a Sept. 19 research note. Edison is expected to use proceeds to fund organic growth and acquisitions.

In July, Edison announced the sale of its oil and gas unit Edison Exploration & Production SpA to independent oil and gas producer Energean Oil & Gas PLC in a deal with an enterprise value of $750 million.

"The positive outlook recognizes that once the disposal has been finalised, Edison's more focused operations, lower debt leverage at the beginning of 2020, and continued role within the EDF group with the financial support this affords, will likely be commensurate with a Baa2 rating," the rating agency said.

Moody's affirmed Edison's issuer rating at Baa3.