Subsequent events
34 Subsequent events
S&P credit rating
On 14 February 2023, Standard & Poor’s (S&P) published a sector report including an update of Stedin’s credit rating. The most important conclusions are:
S&P has downgraded the Stand Alone Credit Profile (SACP) from A- to BBB+ on the basis of the 3-year outlook.
The Dutch regional grid managers with an S&P rating are given the status of “Government Related Entity”.
The consequence for Stedin is a “1 notch uplift” of the SACP, as a result of which the Issuer Credit Rating (ICR), including the downgrade, is an A- with a stable outlook.
The short-term credit rating has remained unchanged at A-2.
The Dutch regional grid managers are given the status of “Government Related Entity” after an assessment of the framework agreement and the willingness and ability of the State to pay additional capital if the credit rating is jeopardised. The reservation of €500 million by the State in the national budget to strengthen Stedin’s equity is also regarded as essential. S&P underlines in the report that capital reinforcement by (potential) shareholders will remain important in the future in order to be able to make all the necessary investments and to maintain the credit rating. The consequences of the conclusions from the report are currently being investigated by Stedin. Stedin’s financial policy remains unchanged for the time being, with retention of an ICR of A- remaining an essential starting point.
For the S&P publication, we refer to the Credit Ratings section of our Investor Relations website: https://www.stedingroep.nl/investor-relations.
