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UK: CC report threatens Northern Ireland Electricity downgrade

By  |  November 27, 2013

Fitch Ratings said that it would have likely downgraded Northern Ireland Electricity had it taken into consideration a recent Competition Commission report that suggests new price control measures for the firm.

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    In a statement released by Fitch Ratings, the company said it would downgrade NIE from A- to BBB+ if the Commission’s report is considered; the report, released earlier this month, includes the proposal to implement separate price controls for NIE’s distribution and transmission networks.

    The UK watchdog suggested 5.5 years of price control to set revenues for NIE, a move Fitch said leads the ratings agency to expect “the reduction in cash flow generation, mainly driven by the lower regulatory allowed revenues.”

    NIE has been on Rating Watch Negative since May of 2012.

    Full Content: Reuters

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