(Alliance News) - Edison Rsp Spa announced Monday that on June 2, the agency Moody's confirmed the company's long-term rating at Baa3 and changed the outlook from negative to stable, following an equivalent change in the outlook of EDF's Baa1 long-term rating.

The confirmation of Edison's Baa3 rating and the change in outlook "reflect the strong improvement in the company's credit profile, following the complete exit from E&P activities and the strategic focus on gas and renewable capacity development in Italy," a company note said.

The rating also takes into account "the strength of the company's balance sheet, which is improving; favorable earnings dynamics and higher cash generation, thanks to the increase in electric generation capacity; optimization of flexibility and adequate indexing of gas contracts; as well as long-term exposure to wholesale electricity prices in Italy."

Edison is up 2.0 percent to EUR1.42 per share.

By Chiara Bruschi, Alliance News reporter

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