RWE Needs Hybrids to Meet Leverage, Growth Plans: BI Video

RWE's increased investment in Amprion supports guidance of 12% annual earnings growth through 2031 but adds to its heavy spending needs for renewable capacity expansion -- potentially widening the funding gap toward €15 billion over the next three-years. Filling this gap entirely with debt would see leverage trend toward the 3.5x internal ceiling by 2028 and test Moody's threshold for a downgrade to the Baa2 rating, leaving RWE likely to resort to non-debt sources of capital to maintain its commitment to strong investment grade ratings. Hybrids represent the key lever to control leverage with RWE having capacity to issue about €10 billion with 50% equity content from Moody's and Fitch, though the lack of an S&P rating and the associated protection against extension risk could become an obstacle for investors.