Rating agency S&P Global Ratings has upgraded the credit rating of Public Power Corporation (PPC) from BB- to BB with a stable outlook, citing the company’s recent share capital increase and the revision of its business plan.
PPC’s €24 billion investment plan takes center stage
“We believe that greater scale and a more geographically diversified presence could strengthen the company’s business risk profile,” the agency’s report states, adding: “In our previous report, we had noted that PPC’s business risk profile was improving following its strategic shift toward renewable energy sources and regulated activities. We now expect this improvement to materialize more rapidly, as PPC’s EBITDA, as adjusted by S&P Global Ratings, is expected to increase significantly to approximately €3.2–3.4 billion in 2028, up from €2 billion in 2025, supported by a broader asset base. This figure exceeds our previous forecast of €2.9 billion by 10%–20%. The stronger domestic economy, PPC’s entry into new regional markets, and demand for data centers will serve as key growth drivers for the company, whose integrated business model supports earnings despite fluctuations in wholesale prices.”
The agency estimates that PPC will post EBITDA of €2.4–2.5 billion in 2026 and €2.5–2.7 billion in 2027. Regarding the new strategic plan, S&P highlights that the company has increased its planned investments to approximately €24 billion for the period 2026–2030, up from the roughly €10 billion previously earmarked for 2026–2028, driven by growing electricity demand, the decommissioning of fossil fuel power generation units, and improving macroeconomic prospects across Southeast Europe. “The company will now invest approximately €5 billion annually, primarily in renewable energy, data centers, and grid infrastructure across Southeast Europe, compared to around €3.5 billion per year under the previous plan,” S&P notes. “The plan is partly financed by a €4.25 billion capital increase, as well as the disposal of treasury shares valued at €250 million, which was completed on May 22, 2026, helping to limit the adjusted debt increase for the 2026–2028 period to approximately €4 billion.”
