Fitch lowers Enel, Endesa

Fitch Ratings said it downgraded Enel SpA's senior unsecured rating to A from A+, long-term issuer default rating to A- from A and short-term issuer default rating to F2 from F1.

Fitch downgraded Endesa SA's senior unsecured rating to A from A+, long-term issuer default rating to A- from A, and short-term issuer default and commercial paper ratings to F2 from F1. Fitch also downgraded Endesa Capital Finance, LLC's €1.5 billion perpetual preferred capital securities to A- from A.

The outlook for the long-term issuer default ratings is negative.

The downgrades follow last week's closing of the tender offer by Enel and Acciona for Endesa's remaining shares, according to the agency.

Enel's downgrade reflects a weakening of its financial profile, with the group's combined leverage at more than 4 times, Fitch said. The downgrade also considers Enel's growing exposure to more volatile markets, including the Russian energy sector where it plans to gain control of OAO OGK-5, the agency said.

Fitch said it lowered Endesa's ratings to align with those of Enel despite its strong standalone profile.

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