Scope Ratings is proposing an update of its European Utilities Rating Methodology and is calling for comments from market participants until 15 April 2024.

The proposed methodology can be downloaded here or on www.scoperatings.com.

Rating impact

The methodology as proposed will not have an impact on outstanding ratings.

Key proposed changes

Besides editorial changes, the proposed updates are as follows:

• Alignment of the industry risk matrix to the General Corporate Rating Methodology, leading to a change of the underlying industry risk profile for regulated power generation to A from AA;
   
• Clarification of how we assess a utility’s cash flow generation and its internal financing capacity and dependence on external funding/financing;
   
• Alignment of the possible up-notching pertaining to a utility’s status as a government-related entity with Scope’s updated GRE rating methodology.

Call for comments

Scope invites issuers, investors and other interested parties to comment on the proposed methodology by 15 April 2024, as part of the agency’s ongoing commitment to transparency and open dialogue with market participants.

Please send your comments to consultation@scoperatings.com.

Scope will review and publish the content of written responses in accordance with regulatory requirements unless the respondent has explicitly requested confidentiality and will publish the final version of the methodology thereafter.