AUDAX RENOVABLES OBTAINS ITS BBB- RATING RECONFIRMATION

Audax Renovables, a Spanish company whose business is divided between the marketing of electricity and gas and the generation of renewable 100% electricity, has obtained the reconfirmation of its previous BBB- rating.

The rating agency Axesor especially appreciated the Contention Plan that Audax Renovables presented in response to the exceptional situation created by the Covid-19 health emergency. The Contingency Plan was designed to mitigate the possible negative impact on the activities, to maintain the company's solid financial position, both in terms of liquidity and credit profile. The Plan adopted aims to guarantee the company's financial solvency even in the event that the most severe scenarios linked to the health emergency occur.

The rating judgment is based on the analysis of the main financial variables and on the evaluation of Audax Renovables' activity data, underlining the position occupied in the Spanish energy market, namely: tenth place among companies operating on the free market and first among independent companies present in the SME segment. To this we must add the positive effects deriving from the geographical diversification of risk, with the sale and generation of energy active - as well as in Spain - also in other countries such as Portugal, France, Germany, Holland, Poland and Italy.

It is expected that the current positioning will be further strengthened by the recent signing of PPA agreements (Power Purchase Agreements) which place the Audax Group as off-taker of reference in the sector. These contracts will contribute to lowering the purchase price of energy by Audax Renovables and, therefore, strengthening its leadership position in the SME segment. An element that places the Audax Group in an excellent position within the commodity sector which tends towards concentration and in which, therefore, the Spanish company can play an important role.

Axesor equally assessed the fact that Audax Renovables has an ownership structure involved in the activities, as well as in-depth experience in the market and adequate financial capacity. The consistent growth, accompanied by a positive operating income led to a significant progress in the financial structure during 2019, achieving the objectives of deleveraging.    

The confirmation of the rating judgment is, for Audax Renovables, a further recognition compared to that already obtained last March 23, when it was included in the IBEX SMALL CAP© index given its growth possibilities and its profitability both at the national as well as international; factors that make it a reference value for investors.