OREANDA-NEWS. Fitch Ratings has revised the Outlook on Germany-based ENTEGA Netz AG's (ENTEGA Netz) Long-Term Issuer Default Rating (IDR) to Positive from Stable and affirmed the IDR at 'BBB-' and senior unsecured rating at 'BBB'.

The revision of the Outlook reflects ENTEGA Netz's more conservative financial profile than previously anticipated, and efforts by its parent ENTEGA AG (ENTEGA) to reduce debt and improve sustainably earnings through an efficiency programme.

The ratings reflect reduced target leverage of around 4.5x on a funds from operations (FFO) adjusted net basis, the low business risk of the network assets as well as uncertainties around the upcoming tariff settlement and progress of re-organisation of ENTEGA Netz's parent group. The ratings also reflect the structural enhancement of the financing structure, including a debt service reserve account.