S&P confirms Uniper’s long-term credit rating for bailout

The Uniper logo is seen outside the company’s headquarters in Duesseldorf, Germany, July 8, 2022. REUTERS/Wolfgang Rattay

BERLIN, July 29 (Reuters) – Rating agency S&P on Friday affirmed Uniper’s (UN01.DE) long-term credit rating at BBB- with a negative outlook, fulfilling one of the bailout conditions of 15 billion euros ($15.32 billion) from Germany’s gas importer.

The package, among the largest in the history of German companies, has yet to be approved by the European Commission and the support of Uniper shareholders. Read more

It has certain conditions, including that Uniper withdraw a legal action against the Netherlands over its coal phase-out as well as a commitment from the Düsseldorf-based group to suspend dividend payments for the duration of its stabilization period.

Support from the German federal government contributed to S&P’s decision to affirm the rating, it said in a statement.

The negative outlook rating indicates that a potential downgrade is less imminent or likely than was the case under Uniper’s previous rating of “CreditWatch negative”.

“This outlook reflects the uncertainty surrounding gas flows and the fact that details of the stabilization plan have yet to be approved,” S&P said.

($1 = 0.9792 euros)

Reporting by Victoria Waldersee in Berlin Editing by Matthew Lewis

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