Enel SpA (ENEL), Italy’s biggest utility, had its credit rating cut by Moody’s Investors Service to Baa2 from Baa1 on concerns falling demand is hurting profit margins.
“Whilst Moody’s expects the company to continue to take measures to limit the impact on its financial profile, these are unlikely to be sufficient to counter the increased risks and pressures,” Moody’s said yesterday in a statement.
Enel, based in Rome, has invested in developing markets to offset weaker performance in its home economy and Spain, where the economic crisis has curbed power demand. Moody’s cited “heightened macroeconomic, political and regulatory challenges” for utilities in Spain and Italy.
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