Energy Minister Konrad Mizzi said today that Standard and Poor's report on Enemalta is positive and it upgraded the power company's standalone credit profile' from CCC to CCC+.
The term standalone credit refers to a profile not including the measures implemented by the government to resurrect the corporation.
Standard & Poor's has reaffirmed a stable outlook for Malta, Dr Mizzi noted during an urgently called news conference held at Castille. Members of the media were summoned to Castille only 25 minutes before the news conference was planned to start.
Dr Mizzi said the government implemented a number of measures which helped achieved the ratings upgrade - such as the closure of the Marsa power plant, the agreement with Shanghai Electric, the rate at which the interconnector project was moving, and the planned conversion to gas.
The report, he stated, highlighted that the Maltese government is making progress in implementing a significant reform in this sector and that Enemalta will have a good cash flow in future.
"Enemalta started off with sinking debts and the reality was that it was a dock yard in the making," Dr Mizzi said.
He said the fact that the government reduced the energy tariffs also helped. He also pointed out that Standard and Poor's also reaffirmed its 'B+' tied to Enemalta's long-term corporate credit rating.
Asked why Enemalta lost €16 million as a result of the hedging agreement, he said that the losses were of €6 million but added that had he not intervened, the consumer would have paid an additional €3m.
Mizzi will publish 'generic' MOU with Azerbaijan soon
Asked when he will be publishing the Memorandum of Understanding between Enemalta and Azerbaijan, Dr Mizzi said that the "generic MOU" will be published in parliament on Monday or Tuesday.
Enemalta satisfied with rating improvement
Enemalta Executive Chairman Ing. Fredrick Azzopardi commended the management team and all employees for their contribution to this positive result: “This rating endorses our efforts in the last few months and encourages us to continue working in this direction. The results of 2014 are just the beginning of a long-term plan to turn around our financial situation, attain a cost-effective and environment-friendly energy mix, consolidate the electricity distribution network, improve customer experience, boost revenue collection and seek new revenues from other sources."