International rating agency Fitch confirmed the BBB- Long-Term Issuer Default Rating (IDR), with a stable outlook, granted to Nuclearelectrica (BVB: SNN), the state company that manages the Cernavoda nuclear power plant.

"The BBB- rating, with a stable outlook, reflects, according to the report published by the Fitch Rating Agency, the strong market position as the only producer of nuclear energy, covering approximately 20% of Romania's consumption needs and a strong operational history; the solid level of profitability, with the similar perspective for the period 2024-2028; major investment plans; involvement in medium-term investment projects with reference to the Project of Units 3 and 4 and the SMR Project; the solid relationship with the Romanian state, implicitly the shareholder ties," reads a note sent to investors by the company.

The IDR affirmation reflects a downward revision of the company's Standalone Credit Profile (SCP) to 'bb+' from 'bbb-' and the simultaneous introduction of a one-notch uplift over the SCP to reflect the rating agency's strong expectations of support by the Romanian state (BBB-/Stable). 

Previously, both the SCP and IDR were at the same level.

The revision of the SCP is due to a substantial increase in Nuclearelectrica's capex plan, particularly for the refurbishment of nuclear unit 1, and the expected increase of business risk during the unit 1 refurbishment planned from June 2027 to March 2030, Fitch explains.

iulian@romania-insider.com

(Photo source: Nuclearelectrica.ro)