Fitch Ratings has affirmed the BBB- long-term issuer default rating (IDR) of Romania’s Nuclearelectrica, the operator of the Cernavoda Nuclear Power Plant, with a stable outlook. The rating reflects Nuclearelectrica’s dominant market position as Romania’s sole producer of nuclear energy, supplying around 20% of the country’s electricity needs. Fitch also highlighted the company’s strong operational track record, solid profitability and ongoing investment plans, including major projects like the construction of Units 3 and 4 at Cernavoda and the Small Modular Reactor (SMR) project.
The affirmation of the BBB- rating comes with a revision of the company’s standalone credit profile (SCP) from bbb- to bb+. This adjustment is due to an increased capital expenditure (capex) plan, particularly for the refurbishment of Cernavoda Unit 1, scheduled from June 2027 to March 2030. Fitch cited this substantial capex and the associated business risks during the refurbishment as key factors behind the downgrade of the SCP.
However, Fitch also introduced a one-notch uplift over the SCP, reflecting strong expectations for continued support from the Romanian state, which remains the primary shareholder in Nuclearelectrica. This state backing is seen as a key factor in maintaining the company’s creditworthiness despite the heightened risks linked to the unit refurbishment and other large-scale investment projects.
Overall, Fitch’s rating decision underscores Nuclearelectrica’s robust position in the Romanian energy market and its solid relationship with the government, even as it faces challenges related to significant upcoming capital projects.
