Moody’s said that the immediate departure of CEZ from Albania would cost the Czech utility 200 mln EUR, or circa 5 bln. CZK. CEZ would have to write off its EUR 102 mln initial investment and the additional EUR 100 mln that it has put into the country. The loss could be reduced if CEZ were able to invoke its EUR 60 mln World Bank guarantee. Moody’s kept its credit rating for CEZ at A2, with a stable outlook.
We consider the news as Neutral, we calculate that CEZ may write down 2-3bln CZK (roughly 5% of 2012 pft) after adjusting for the World bank guarantee if decides to shut down operations in Albania.