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UTILITIES: Week in Review

UTILITIES

Data from RTE showed France’s electricity share from fossil fuels fell to 5% in 2024.

  • Spreads lagged the overall market marginally, averaging just under 2bp tighter on the week. FCCSER (-7) and MRDGF (-6) were the best performers.
  • Orsted spreads (+10) were pressured as it took another asset impairment and faces a tough politicial environment and cost issues in the US. Both S&P and Fitch joined Moody’s on outlook negative with metrics stretched, but likely to improve this year. Farm downs will be important for the balance sheet from here.
  • A2A brought the first green bond to meet the new EU “gold standard”. Demand was strong, bringing pricing 5bp inside our FV.
  • Severn Trent results contained no surprises, with credit metrics little changed https://mni.marketnews.com/40PLGif.
  • Ausgrid has been out with a mandated 8Y since Tuesday.
  • Thames Water was downgraded two notches by Moody’s in response to the Ofwat final determination.

    Utilities WIR 24
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Data from RTE showed France’s electricity share from fossil fuels fell to 5% in 2024.

  • Spreads lagged the overall market marginally, averaging just under 2bp tighter on the week. FCCSER (-7) and MRDGF (-6) were the best performers.
  • Orsted spreads (+10) were pressured as it took another asset impairment and faces a tough politicial environment and cost issues in the US. Both S&P and Fitch joined Moody’s on outlook negative with metrics stretched, but likely to improve this year. Farm downs will be important for the balance sheet from here.
  • A2A brought the first green bond to meet the new EU “gold standard”. Demand was strong, bringing pricing 5bp inside our FV.
  • Severn Trent results contained no surprises, with credit metrics little changed https://mni.marketnews.com/40PLGif.
  • Ausgrid has been out with a mandated 8Y since Tuesday.
  • Thames Water was downgraded two notches by Moody’s in response to the Ofwat final determination.

    Utilities WIR 24