New Credit Rating for Enemalta plc

26.04.2022

S&P Global rating agency affirmed Enemalta’s B+ rating and revised the outlook to positive, indicating that the company’s rating may be further improved if current trends continue.

In this assessment S&P Global Agency took into account the Maltese government’s commitment in containing the rise in tariffs by financially supporting Enemalta to cover for losses caused by high gas and imported electricity prices and the rising cost of carbon credits related to emissions in order to avoid raising tariffs.

The reports highlights the government guarantees of up to 200 million euros to offset the impact of rising international energy prices. S&P global stated that Enemalta’s rating will be considered for review if the Government’s pledge is regularly honoured.  Furthermore, the report noted that so far the government is fulfilling this obligation.

The international agency also remarked that the government’s constant aid has eased Enemalta’s cashflow pressures. Moreover, during the pandemic Enemalta managed to maintain its revenue by the issued government supporting grants which enabled customers to pay their bills. As a result, Enemalta’s managed to maintain debts at sustainable levels.