Standard & Poor's upgraded NEC's credit rating outlook to positive

The international rating agency Standard & Poor's raised the outlook of the National Electric Company from stable to positive and confirmed the long-term credit rating BB. The enhanced outlook means that the company manages its funds and loans in a reliable and balanced manner. The improved outlook represents another step forward after the agency raised NEC's rating from BB- to BB last year due to improved credit metrics.

S&P expects that after the liberalization of the retail market in 2026, the company's profitability will improve and its indebtedness will decrease, which in turn could lead to an increase in the credit rating.

"The increased perspective and the expectation of growth of the credit rating by the leading international rating agency S&P is an important success for the Bulgarian energy industry. This is the result of the consistent work and strategic support of the state. I am convinced that this success will contribute to the sustainability and development of our energy system," commented Energy Minister Vladimir Malinov.

S&P views NEC as a subsidiary of strategic importance to BEH, given NEC's important role in Bulgaria's energy system as an emission-free hydroelectric power producer, supplier of last resort and public electricity supplier. The rating agency also takes into account the fact that NEC managed to transform itself from a loss-making enterprise in a certain past period into a company that brings nearly 10% of BEH's gross profit.