OREANDA-NEWS. Fitch Ratings has revised Bulgarian Energy Holding EAD's (BEH) Outlook to Stable from Negative while affirming the Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) at 'BB-'. The agency has also affirmed BEH's foreign currency senior unsecured rating at 'BB-'.

The Outlook revision reflects BEH's improved liquidity position following the company's recent five-year EUR550m bond issue, which allowed BEH to refinance most of its large short-term debt.

The affirmation reflects BEH group's substantially improved funds from operations (FFO) in 2015 and 2016, from a low level in 2014, due to various legislative and regulatory changes implemented during 2015 and successful renegotiations of power purchase agreements (PPAs) with two thermal power plants. The ratings are notched up one level from BEH's standalone rating, reflecting the group's strong links with the Bulgarian state (BBB-/Stable), including guarantees for part of the BEH group's debt.