The dividend amounts to no more than 50% of the net profits during the period covered by the plan, with a best effort target of at least €100 million a year. This percentage will be lowered if such a payment could lead to the company losing its A rating profile within five years.
We seek to build and maintain long-term relationships with a broad range of banks (core banking group) so as to ensure the availability of adequate stand-by lending facilities. The core banking group includes Netherlands-based and international banks, all of which being of good standing and having a wide range of products and strong credit ratings.
Enexis Holding N.V. has been assigned credit ratings by Standard & Poor’s (S&P) and Moody’s. Enexis Netbeheer B.V. will also have a credit rating assigned by 1 of these rating agencies, in order to simplify the compliance with the legal requirements regarding the creditworthiness of the Grid manager.
We seek to have an A rating profile, defined as a credit rating of at least A flat/A2 with a stable outlook. This credit rating target provides a buffer relative to the statutorily required minimum creditworthiness of an ‘investment-grade rating (BBB/Baa2)’ for Enexis Netbeheer B.V., as referred to in the Financial Management (Grid Operators) Decree.
The A rating profile is in line with the regulatory weighted average cost of capital (WACC) principles and, hence, in line with the compensation for funding costs. In order for Enexis Holding N.V. and Enexis Netbeheer B.V. to continue to have identical ratings, it is our policy to limit as much as possible the ‘structural’ subordination of debt.