PPC rating upgrade by Standard & Poor’s

PPC rating upgrade by Standard & Poor’s

Standard & Poor’s on Monday upgraded Public Power Corporation’s (PPC) credit rating to BB- from B+ with a stable outlook.

In its report, the rating agency pointed out that the additional profitability from energy production is financing the subsidy of consumers and also that the possible imposition of a windfall profits tax on the energy sector will have a small impact on the company as profit margins in retail are very low.

S&P proceeded with the upgrade of PPC after an upgrade of the Greek economy on April 22 with the reasoning that, if needed, the state, which holds 34% of PPC stock, will have greater ability to support the company.

Last Friday the corporation refuted the distribution of bonuses to its officers in the form of shares, in response to media reports on the utility’s share buyback plan.