Rating agency praises Enemalta following Shanghai Electric investment

Standard & Poor praised Malta state energy provider Enemalta on Friday for improving its long-term financial sustainability, following a 250-million-euro (264 million U.S. dollar) investment of share purchased by Shanghai Electric in 2014.

The rating agency praised Enemalta's efforts in the implementation of a turnaround plan that has seen its swing to profitability consolidated after being on the brink of bankruptcy in 2012.

Standard & Poor's said in a report that the predictability of Enemalta's performance had greatly improved and better quality services were being offered.

Last Friday, Fitch Ratings described Enemalta as a profitable company that was no longer a threat to Malta's economic development.

During a visit to Enemalta on Friday, Maltese Prime Minister Joseph Muscat said that although the process had not been easy, the government had immediately committed to making Enemalta profitable again following its election in 2013.

He said there were two important conclusions in the Standard & Poor's report. Firstly, the improvements at Enemalta were crucial for the growth of the economy. Secondly, the only threat to the country's energy sector was possible meddling with the existing system.

Shanghai Electric signed an agreement with Enemalta in March of 2014 to buy a 33-percent equity stake in Enemalta. Endit