Our target financial ratios are based on:
Under the Financial Management (Grid Operators) Decree, Enexis Netbeheer B.V.*, in its capacity as a grid operator, has a statutory obligation to achieve the following minimum financial ratios in terms of its interest coverage, debt coverage and capital structure:
Additionally, the Decree requires that, at the time of its incorporation, Enexis Netbeheer B.V’s* total debt in relation to equity + total debt must not exceed 60%. This ratio is allowed to rise to no more than 70% if the company needs to make mandatory investments in the regulated grids.
As an alternative to the statutory ratios, a grid operator may obtain a minimum BBB/Baa2 investment-grade rating. In such cases, the statutory obligations will have been met with the credit rating and achieving the reported ratios will no longer be required.
To support the objective of having a stable credit rating at the proposed level, management uses the following ratios for both Enexis Holding N.V. (consolidated) and Enexis Netbeheer B.V.* as a minimum standard for their financial policies:
Target financial ratios for Enexis Holding N.V. and Enexis Netbeheer B.V.*
These ratios provide a buffer relative to the minimum ratios stated in the Financial Management (Grid Operators) Decree and hence form the basis for Enexis’ financial policy and Planning & Control cycle. By meeting these ratios, we expect to have sufficient potential and flexibility for growth and future investment.
*since January 1st 2018 the name of Enexis B.V. has changed to Enexis Netbeheer B.V..