The credit rating of EN+ GENERATION JSC (hereinafter, the Company) is based on the fact that the Company is a key enterprise of EN+ HOLDING ILLC (hereinafter, EN+ HOLDING, or the Holding), whose subsidiaries accounted for the overwhelming share of consolidated revenues in 2025. Therefore, the consolidated data of EN+ HOLDING was used to assess financial and operational indicators as part of the rating analysis.
The Company’s credit rating has been upgraded to AA-(RU) due to the Company’s good performance in 2024–2025, as well as the positive forecast for future operations.
The Holding’s companies generate electricity and heat energy. The installed capacity of the Company’s generating assets is 19.5 GW and 13,600 Gcal/h. The main operating assets are primarily located in the Irkutsk Region and the Krasnoyarsk Krai.
The Company’s credit rating is determined by its strong market position (EN+ HOLDING consolidates a number of the largest generating companies in the Russian Federation and the largest of these companies in Siberia), low price and sales risks thanks to the generation structure and predominant share of hydroelectric power plants (HPPs), minimal supplier risks due to the presence of own raw material base, sound profitability due to the large share of HPPs in the generation of electricity, as well as the good liquidity position, including due to a large number of available credit limits. The rating is constrained by the medium assessments of leverage and coverage, as well as the growth of capex as part of the investment phase.
The sole shareholder of the Company is EN+ GROUP IPJSC (hereinafter, the Group).
KEY ASSESSMENT FACTORS
Profitability and price and sales risks. The Company’s profitability exceeds the average for Russian generating companies due to the large share of HPPs in its capacity. In 2025, the FFO margin of EN+ HOLDING before net interest payments and taxes was 35% (40% in 2024). ACRA expects the Company’s profitability to slightly increase in 2026–2028 and further remain at this level. According to the operating rules of the Wholesale Electricity and Capacity Market (WECM), offers of HPPs are taken by the market day ahead, which guarantees loading of HPP generating facilities even in the event of a decline in electricity consumption. It should be noted that the HPPs of the companies of EN+ HOLDING Group are located on different rivers and have water reservoirs of annual and multiyear regulation, which mitigates the impact of their water level changes on the volume of electricity generation. In addition, HPPs do not have one of the most costly expenditure items in electricity production — fuel — which can occupy up to 60% of the price of production of 1 kWh. The Company has entered into direct long-term contracts with companies that are part of the Group, with a 3.5% discount on the day-ahead market prices; up to 50% of generated energy is supplied under these contracts. Short-term overdue payables of EN+ HOLDING amounted to 1.3% of revenues in 2025.
Adequate geography and corporate governance. The Company’s main operating assets are primarily located in the Irkutsk Region and the Krasnoyarsk Krai, i.e. in regions that have a high level of socioeconomic development. EN+ HOLDING is implementing a consistent development strategy and continues to develop new hydropower generation facilities. The Company has a complete risk management system that is an integral part of the internal control and corporate governance system. The Company has a management board while decisions of the Group’s board of directors cover all companies in the Group. The corporate governance assessment is constrained by the complicated nature of the Group’s structure and related-party transactions.
Leverage and coverage. As of April 30, 2026, the Company’s nominal debt, taking into account its subsidiaries, was RUB 260.7 bln and consisted of ruble-denominated bank loans, including yuan-denominated loans and market bonds, which make up about 51% of the debt. The debt repayment schedule has pronounced peak periods. In 2025, the leverage (total debt to FFO before net interest payments) amounted to 2.7x (vs. 2.6x in 2024).
The interest coverage (FFO before net interest payments to interest payments) amounted to 2.2x (vs. 2.8x in 2024) due to growing interest payments.
Free cash flow (FCF) and liquidity. The Company’s FCF was positive in 2023–2024, but in 2025 it became negative due to, among other things, growing capex and the payment of dividend to the Group. The high level of liquidity is supported by significant cash balances in accounts and deposits (RUB 40 bln as of April 30, 2026), as well as undrawn credit lines for a total of RUB 400.6 bln as of April 30, 2026. The capex-to-revenue ratio amounted to 12% in 2025 (vs. 13% in 2024). In 2026–2028, this indicator is expected to grow to a weighted average of 17% due to the Company undergoing an investment phase.
KEY ASSUMPTIONS
- Implementation of the capital investment program according to plan.
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS
The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.
A positive rating action may be prompted by:
- Weighted ratio of total debt to FFO before net interest payments falling below 1.0x coupled with the weighted ratio of FFO before net interest payments to interest payments exceeding 5.0x and the weighted capex-to-revenue ratio declining below 10%.
A negative rating action may be prompted by:
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Weighted average total debt to FFO before net interest payments exceeding 2.0x;
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Weighted average FFO before net interest payments to interest payments falling below 2.5x;
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Significant deterioration of access to external liquidity sources.
RATING COMPONENTS
Standalone creditworthiness assessment (SCA): aa-.
ISSUE RATINGS
Bonds of EN+ HYDRO LLC, series 001PC-05 (RU000A108FX8), maturity date: November 17, 2026, issue volume: CNY 1.1 bln — AA-(RU).
Bonds of EN+ HYDRO, series 001PC-06 (RU000A10AG22), maturity date: December 15, 2026, issue volume: RUB 7 bln — AA-(RU).
Rationale. The issues represent senior unsecured debt of EN+ HYDRO LLC, a company of EN+ HOLDING Group. The basis for assigning a credit rating is a public irrevocable offer from the Company. Due to the absence of either structural or contractual subordination of the issues, ACRA regards them as equal to other existing and future unsecured and unsubordinated debt obligations of the Company in terms of priority. In accordance with ACRA’s methodology, the detailed rating approach is applicable, according to which the recovery rate on the issues belongs to category I and therefore the credit ratings of the issues are equal to the credit rating of the Company — AA-(RU).
REGULATORY DISCLOSURE
The credit ratings have been assigned to EN+ GENERATION JSC and the bond issues of EN+ HYDRO LLC based on the following methodologies: the Methodology for Assigning Credit Ratings to Non-Financial Corporations under the National Scale for the Russian Federation to calculate the SCA and determine the credit rating and the credit rating outlook of EN+ GENERATION JSC under the national scale for the Russian Federation; the Methodology for Assigning Credit Ratings to Financial Instruments on the National Scale for the Russian Federation to determine the credit rating of the bond issues under the national scale for the Russian Federation; the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities to ensure consistent and uniform application of ACRA’s methodologies, rating scales, models, and key rating assumptions.
The principles of the Methodology for Assigning Credit Ratings to Regions and Municipal Entities under the National Scale for the Russian Federation were also applied to assess the economic development of the rated entity’s region of presence.
The credit rating of EN+ GENERATION JSC and the credit ratings of the bond issues (RU000A108FX8, RU000A10AG22) of EN+ HYDRO LLC assigned under the national scale for the Russian Federation were published by ACRA for the first time on September 20, 2024, May 21, 2024, and December 25, 2024, respectively.
The most recent publication date of the credit ratings of EN+ GENERATION JSC and the bond issues (RU000A108FX8, RU000A10AG22) of EN+ HYDRO LLC is July 2, 2025.
The credit ratings and the credit rating outlook are expected to be revised within one year.
The credit ratings were assigned based on data provided by EN+ GENERATION JSC, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS financial statements of EN+ HOLDING ILLC as of December 31, 2025.
The credit ratings are solicited and EN+ GENERATION JSC participated in the rating process.
In assigning the credit ratings, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no additional services to EN+ GENERATION JSC during the year preceding the rating action.
No conflicts of interest were discovered in the course of the rating process.
