5 January 2011
URENCO notes the decision by Fitch Ratings to downgrade its senior unsecured issuer rating from A+ to A. The downgrade is part of a review carried out by Fitch of URENCO’s credit rating..
The downgrade reflects the current credit climate and takes into consideration an expanded capex programme, to meet the increasing demand for enrichment services from URENCO’s international customer base, that Fitch expects to be significantly debt-funded.
This brings Fitch’s rating in line with Moody’s rating (A2) and that of Standard and Poor’s (A-).
Fitch confirmed that URENCO benefits from a near-term competitive advantage in its gas centrifuge technology, and diversity in customers and locations of enrichment facilities. In addition, Fitch comments that URENCO operates a stable business model, with largely fixed price, long-term contracts.
URENCO is confident that its robust financial position; strong balance sheet and forward order book in excess of €21 billion extending beyond 2025, provides the Group with excellent revenue visibility for the foreseeable future.