Moody’s drops E.ON to Baa2

Moody's Investors Service said it downgraded the long-term senior unsecured ratings of E.ON SE and its guaranteed subsidiaries, E.ON International Finance BV and E.ON Beteiligungen GmbH, to provisional Baa2/Baa2 from provisional Baa1/Baa1.

Concurrently, the agency affirmed the group's P-2 short-term ratings.

The outlook was changed to stable from negative.

Moody’s said the action reflects its view that measures announced by E.ON will not be sufficient to restore the company's financial profile in line with the agency's guidance for a Baa1 rating of credit metrics of funds from operation (FFO)/net debt of upper teens and retained cash flow (RCF)/net debt of mid-teens in percentage terms, over the next 12 to 18 months.

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