ENERJISA ENERJI
Fitch Ratings has revised
The Outlook is Negative.
The revision follows the recalibration of Turkiye's National Rating scale, which itself follows the recent upgrade of Turkiye's Long-Term Issuer Default Rating (IDR) to 'B+' from 'B'. The revision is for reasons that are not related to Enerjisa's credit quality.
Key Rating Drivers
The revision of the National Rating reflects changes in Turkiye's National Rating scale driven purely by the recalibration of Fitch's National Ratings Correspondence Table.
National Ratings are a measure of relative credit risk among issuers in a country designed to help local investors differentiate risk. Turkiye's National Ratings are denoted by the unique identifier '(tur)'. National scales are not comparable with Fitch's international ratings scales or with other countries' national rating scales. For more details, see ' Fitch Ratings Recalibrates Turkiye's National Rating Scale', dated
For the Negative Outlook rationale and other key rating drivers see 'Fitch Downgrades Enerjisa to 'AA(tur)'; Outlook Negative', dated
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade:
Due to the Negative Outlook, an upgrade is unlikely. However, improvement in funds from operations (FFO) interest coverage to above 2x by 2025, either due to stronger-than-expected operating performance or lower cost of new debt, together with stable working capital (WC) and a reduction in the share of short-term debt, would lead to the Outlook being revised to Stable
Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade:
Weaker access to bank and bond-market funding
FFO net leverage above 4x and FFO interest coverage below 2x, both on a sustained basis
WC outflow in the supply segment leading to an accelerated increase in short-term debt
Adverse regulation effects including delays in recoveries of investments
Large unhedged foreign-currency debt exposure
Summary of Financial Adjustments
Fitch-calculated EBITDA and FFO include cash-effective capex and WACC reimbursements related to service concession arrangements, and exclude financial income accrued but not yet paid.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
RATING ACTIONS
Entity / Debt
Rating
Prior
Natl LT
A(tur)
Revision Rating
AA(tur)
Page
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