S&P flips Vattenfall view to positive

S&P said it revised Vattenfall’s outlook to positive from stable and affirmed its BBB+ rating.

“An improved balance sheet and more favorable pricing led to much stronger-than-anticipated credit metrics. Vattenfall's credit ratios have improved over the past few years, above our previous expectations,” the agency said in a press release.

S&P said proceeds of SEK 37 billion from previously announced asset sales should substantially lower net debt in 2021 and support credit ratios over 2022 and 2023, though this will be offset by increased investment and dividends.

The agency said it forecasts Vattenfall’s S&P Global Ratings-adjusted funds from operations (FFO) to debt in the 30%-35% range in 2022-2023, compared to its previous expectations of 20%-25% and gives Vattenfall ample flexibility to deliver on its strategy.

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