Fitch lowers RWE to negative

Fitch Ratings said it revised RWE AG's outlook to negative from stable and affirmed its long-term issuer default rating and senior unsecured rating at BBB+, short-term issuer default rating at F2 and subordinated note rating at BBB-.

Fitch also said it affirmed RWE Finance BV's notes, which are guaranteed by RWE, at BBB+.

The outlook revision reflects RWE's declining earnings and a challenging operating environment, but also an increasing proportion of regulated and quasi-regulated earnings, which will support the business profile, the agency said.

Using current market prices, Fitch said it assesses RWE's earnings and debt capacity as weak for a BBB+ rating.

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