Rating

The rating represents an assessment of the company's credit worthiness and is provided by various independent international agencies.

Hera's official rating is assigned by the two leading specialised credit agencies: Moody's and Standard & Poor's.

The upgrade of Hera recognizes the company’s solid operating performance and financial profile, illustrated for example by a Moody’s-adjusted ratio of FFO to net debt of 24% on average over the last five years (2020-24), and their expectation that this ratio will remain in the low-twenties in percentage terms over 2025-27. Hera’s Baa1 ratings further reflect the company’s diversified business mix and its portfolio of regulated and quasi-regulated activities, with limited price and volume exposure, underpinned by supportive and transparent regulatory frameworks; the contribution from quasi-regulated activities which support cash flow stability; Hera’s strategy of growth through small and medium-scale acquisitions; and its solid liquidity. 

Standard & Poor’s stated that Hera's business plan over 2024-2028 aligns with the company's core strategic priorities and preserves the business mix quality. Keeping a diversified multi-business portfolio remains among management's strategic priorities and is a key rating consideration, because it is a competitive advantage and limits the risk profile of the company's business mix. Furthermore, the management is committed to maintaining its reported leverage at or below 3x in company-defined terms. Following the recent positive rating action on Italy, the rating on Hera is at the same level as that on the sovereign.

Page updated 26 November 2025