Dáil Éireann Debate, Tuesday - 25 November 2014
561. Deputy Barry Cowen asked the Minister for Communications, Energy and Natural Resources the credit rating of Ervia; if it has issued any bonds in 2012, 2013 and to date in 2014; if it has plans for future bond issuance; if its credit rating is subject to review following the changes to the Irish Water revenue model; and if he will make a statement on the matter. [45391/14]
View answerI am advised that Ervia’s current credit ratings are BBB+ (S&P) and Baa1 (Moody’s). I understand that Ervia issued a five year €500m Eurobond in November 2012 at a competitive coupon of 3.625%. The transaction received total orders of more than €6.5bn, demonstrating strong demand for Ervia debt issuance. No public bonds were issued by Ervia in 2013 or 2014. Ervia is looking at the possibility of issuing a new Eurobond in 2015, and preparation for such an issuance is currently ongoing.
I am advised that the change in the Irish Water charging regime, which is not expected to materially change Irish Water’s allowed revenue (as determined by the CER) is not expected to affect Ervia’s credit rating given that, from a financing perspective, Ervia is ring fenced from Irish Water. Irish Water will apply for its own credit rating in the coming years once the revenue model and regulatory backdrop become more established. The achievement of an investment grade rating is a core principle of Irish Water’s long term funding strategy.
