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S and P upgrade ESB rating outlook

Wednesday, February 13 14:34:46

In a boost to Ireland's biggest utility, Standard and Poor's (S and P's) Rating Services today that it has revised ESB's credit rating to BBB+ (Stable Outlook) from BBB+ (Negative Outlook).

The change follows S and P's announcement yesterday that it has upgraded its outlook on the Republic of Ireland.

S and P has also revised its outlook on ESB's subsidiary Northern Ireland Electricity (NIE) to BBB+ (Stable).

Donal Flynn, Finance Director of ESB, said: "The revision in ESB's rating to BBB+ (Stable) reflects ESB's strong underlying business and careful financial management, as well S and P's revised outlook on the Republic of Ireland. ESB is committed to delivering on its cost reduction plans, which will strengthen the company's financial position, enhance competitiveness and support future performance. ESB's business plan is supported by a solid financial structure and good liquidity position, following the successful issue of E1.1bn in Eurobonds in Q3 and Q4 2012."

ESB is currently implementing a cost reduction programme which will deliver annual savings of E280million over a four year period to 2015. E140 million of the savings will be delivered through reductions in payroll costs.