European Utilities: 2025 Credit Outlook
European utilities may see earnings flat-line in 2025, while sector debt looks set to increase further as spending for the energy transition continues unabated. This may push leverage closer to the edge of the comfort zone, but a shift in spending towards networks and away from renewables may also lower the sector's risk profile. Paul Vickars, Senior Credit Analyst at Bloomberg Intelligence, discusses what this may mean for credit quality and bond performance.