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 the new business plan 2023-2027 provides strategic continuity and supports the rating as stable and predictable cash flow generation from fully regulated activities in electricity, gas, and water distribution, as well as urban waste collection and treatment, will represent at least 40% of reported EBITDA over the next two to three years. Furthermore, Hera has a balanced financial policy, with a commitment to the current rating. The rating on Hera remains capped at one notch above our rating on Italy.

Page updated 09 September 2024