Investing.com -- Moody’s Ratings has upgraded Eni S.p.A.’s long-term issuer rating to A3 from Baa1, the ratings agency announced Tuesday.
The upgrade follows Moody’s recent action on Italy’s sovereign rating, which was raised to Baa2 from Baa3 on November 21. The outlook on Eni has been changed to stable from positive.
In addition to the issuer rating upgrade, Moody’s also raised Eni’s senior unsecured debt ratings to A3 from Baa1, its senior unsecured EMTN program rating to (P)A3 from (P)Baa1, and its subordinated EMTN program rating to (P)Baa2 from (P)Baa3.
The agency also upgraded Eni’s Baseline Credit Assessment to a3 from baa1 and its junior subordinated debt ratings to Baa2 from Baa3. The backed senior unsecured debt rating of Eni’s guaranteed subsidiary, Eni USA Inc., was upgraded to Baa1 from Baa2. Eni’s Prime-2 commercial paper rating was affirmed.
Moody’s cited Eni’s ability to maintain a strong business profile and robust credit metrics even during periods of lower commodity prices as key factors in the upgrade decision. The company has successfully reduced its gross debt while increasing the resilience of its upstream business.
The ratings agency highlighted several strengths supporting Eni’s rating, including its sizeable and geographically diverse asset base in upstream operations, strong exploration track record with one of the highest reserve replacement ratios in the industry, and comprehensive strategy to reduce its carbon footprint.
Additional positive factors include Eni’s conservative financial policies, strong credit metrics with RCF/net debt at approximately 39% by LTM September 2025, and excellent liquidity position.
Moody’s also noted challenges facing the company, such as exposure to volatile oil and gas prices, significant operations in non-OECD countries, a less diversified business profile compared to larger integrated oil and gas majors, and risks related to the energy transition.
The stable outlook reflects Eni’s resilient operating performance and aligns with Italy’s stable outlook. Eni’s rating is constrained at two notches above Italy’s sovereign rating due to the government’s 31.8% equity holding and its influence in board appointments, as well as Eni’s domestically focused downstream business.
Moody’s indicated that upward rating movement for Eni is unlikely without an upgrade to Italy’s sovereign rating. Conversely, a downgrade of Italy would likely trigger a similar action for Eni, as would a sustained weakening of Eni’s financial profile with RCF/net debt falling below 25% at mid-cycle commodity prices.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
