Standards & Poors: 'B+' Rating Affirmed, Outlook Stable

12. September 2019. The renowned rating agency Standard & Poor's affirmed on Monday, 9th September 2019. the outlook of Zagreb City Holding as stable and the credit rating at B+.

The agency's report says: " Croatia-based multi-utility Zagrebacki Holding d.o.o. (ZGH) continues to demonstrate high leverage, with funds from operations (FFO)-to-debt of 5.5% in 2018 and no expected immediate uptick in performance. - We see a very high likelihood of the company receiving extraordinary government support in the event of financial distress. - Therefore, on Sept. 9, 2019, S&P Global Ratings affirmed its 'B+' long-term issuer credit rating on ZGH. - The stable outlook reflects our expectation that the company's performance will remain stable, with FFO-to-debt at 5%-12%, no significant increase in debt, no further material changes to the group's structure, and no immediate pressures on liquidity given the ongoing support from the city of Zagreb and availability under short-term bank lines."