Standard and Poor’s ‘endorses’ Enemalta’s efforts

The international credit rating agency Standard and Poor’s (S&P) has for the fifth time in four years endorsed the efforts of Enemalta plc in the implementation of its turnaround plan for better quality services and long-term financial sustainability, Enemalta said.

“We believe that the predictability of Enemalta’s performance has greatly improved and that the swing to profitability is now consolidated,” said S&P in its annual review of the state-owned energy company.

Enemalta said that it welcomes this “positive review” as another confirmation of the “achievement” of its team of employees as they transformed a loss-making corporation into a profitable, forward-looking company “capable of providing customers with reliable and efficient electricity services at some of Europe’s lowest tariffs.”

“The rating agency identifies the project to establish a diversified electricity generation mix, including the building of the new Delimara 4 gas-fired plant and the gas conversion of the Delimara 3 plant, as “one of the main steps” of Enemalta’s turnaround,” read a statement.

It added that the Standard and Poor’s approval also confirms the company’s commitment to continue improving the efficiency of Malta’s electricity distribution network with another €60 million investment in 2017 and 2018.

S&P has also commended the company’s management team, upgrading Enemalta’s governance assessment form Fair to Satisfactory. It said that over the past three years, management delivered consistently against the targeted business repositioning and deleveraging.