S&P Global Ratings on Dec. 6 upgraded the long-term ratings of Enel SpA to "BBB+" from "BBB," with a stable outlook.
The rating agency said the upgrade follows the company's presentation of its strategic plan for 2018 to 2020, highlighting Enel's investment focus on networks and renewable generation, efforts to further simplify its corporate structure and anticipated cost optimization through the digitalization of assets.
S&P Global Ratings expects that Enel will be able to improve the ratio of funds from operations to financial debt on a consolidated basis by more than 22% for the 2018-2020 period due to growth in EBITDA and debt stabilization.
The ratings improvement reflects Enel's plan to shift more than 75% of its investments to mature markets in Europe and North and Central America, from emerging markets, with a related decrease in the related risk profile, S&P said.
The rating agency also confirmed its short-term rating for Enel at "A-2."
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.