Ratings agency Standard & Poor’s (S&P) said that it has upgraded Greek Public Power Corporation’s (PPC) credit rating to BB- from B+ with a stable outlook.
In its report, the rating agency pointed out that the additional profitability from electricity production is financing the subsidy of consumers and also that the possible imposition of a windfall profits tax on the energy sector will have a small impact on the company as profit margins in retail are very low.
S&P proceeded with the upgrade of PPC after an upgrade of the Greek economy on 22 April with the reasoning that, if needed, the state, which holds 34 % stake in PPC, will have greater ability to support the company.
