Moody’s - New York - 09 Aug 2021. Moody’s published its carbon transition assessment (CTAs) of 51 unregulated electric and gas utilities in Asia, Latin America, North America and the Middle East.
Moody’s CTA score for Enel Américas was CT-3 (ranging from CT-1 as best and CT-10 as worst) and a score of 1.86, which represents a “strong” positioning for the carbon transition, where the agency does not expect our business model to be materially affected by the carbon transition, and our strategies and plans will substantially mitigate our exposure to decarbonization risk.
The score is composed from 4 components for generation assets:
1) Current business profile, which is scored based on the utilization rate of fossil fuel plants and expected phaseout of fossil fuels from its generation mix.
2) Exposure to medium-term policy, market and technology risk, which assess the exposure to these factors for the company
3) Medium-term response activities, which weighs the planned fossil-fuel generation for the next five years, and how issuers anticipate to local decarbonization policies.
4) Long-term exposure to rapid transition scenario, which looks at the proportion of capacity closed in ten years and if companies need significant realignment in case of a rapid transition scenario.
The overall score also considers non-generation activities, assigning them a score that ranges from 1 (low-carbon activities) to 4 (high-carbon activities).
The strong score showcases the significant commitment towards decarbonization and a cleaner generation mix from Enel Américas, reflected by the incorporation of EGP Américas in our perimeter and the development of a large pipeline of projects in the upcoming years.