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.

Moody’s rating is based on the strong business profile of the company, with an extremely well-balanced portfolio of activities and highlights the high visibility of regulated activities, together with solid financial metrics. The credit profile of Hera S.p.A. is supported by the company's diversified business mix; its portfolio of low-risk domestic fully regulated activities, with limited price and volume exposure, and underpinned by supportive and transparent regulatory frameworks; the contribution from quasi-regulated activities which supports cash flow stability; the company's strategy of growth through small and medium scale acquisitions mainly funded with exchange of shares; and a solid liquidity and financial profiles. These positives are balanced by the exposure to the credit profile of the Government of Italy (Baa3 stable), given that Hera generates all its earnings domestically. From a financial perspective, we expect Hera to maintain its current sound financial profile.
Standard & Poor’s stated that, despite significant but temporary working capital volatility, Hera's profitability stood the test of the energy crisis. The updated business plan involves no change to the company's strategic priorities, with most growth stemming from waste and networks and Hera's short position in generation is offset by stable earnings from regulated activities and its strong position in waste treatment. Hera's profitability has proven resilient to economic developments in Italy in the past. The rating on Hera remains capped at one notch above our rating on Italy.

Page updated 29 December 2023