Plans by CEZ to invest more than US$5.6bn in upgrading capacity may be a constraint on the company's credit rating in coming years, according to Moody's Investors Service.
Moody's statement does not mean a prompt risk of downgrade. The rating agency might have significantly different earnings forecast than the company or analysts due to different electricity price and profitability projections. Moreover, we believe that CEZ has the flexibility with the timing of its CAPEX if it wants to preserve it rating. Therefore, we do not see the warning should have serious impact on CEZ share price.