UBS affirms its A+ Stable rating for Swiss utility Romande Energie following improved 2025 operating performance. Despite negative free cash flow due to high capex, RE maintains a strong balance sheet and defensive business fundamentals.
Key Takeaways
- 1.Romande Energie (RE) improved operating performance in 2025, driven by a strong second half and contributions from Alpiq.
- 2.UBS affirms its A+ credit rating with a Stable outlook, citing RE's role as a leading distributor of green electricity and key infrastructure operator in Vaud.
- 3.Free cash flow remains negative due to a significant investment cycle in grid infrastructure and renewables, leading to a rise in net leverage.
Table of Contents
- Issuer credit view
- Romande Energie
- CIO credit risk flags
- Investment case
- Issuer description
- Better-than-expected 2025 on a spurt in 2025
- High capex (and dividend payout) weighed on credit metrics
- Romande Energie's financial summary
- Required disclosures
- UBS CIO risk views
- UBS CIO valuation views
- Sell recommendations
- For Credit Suisse clients
- Issuer valuation views
- Analyst certification
- Company/Country Disclosures (12 May 2026)
- Producers, disseminators and their competent authorities
- Frequency of updates
- Statement of Risk
- Issuer / bond rating definitions
- Risk Information
Document Preview
Access the Full Report
Get unlimited access to institutional research reports with a 14-day free trial.
Authors
Alexandra Bossert, CFA
Securities
Romande Energie HoldingAlpiq
Themes
Energy TransitionCapital Intensive Infrastructure Investment
Regions
EuropeSwitzerland