Today, Fitch Ratings ("Fitch") downgraded EDP - Energias de Portugal, S.A.'s ("EDP") and EDP Finance B.V.'s senior unsecured ratings to "BBB+" from "A-" and placed them on Rating Watch Negative ("RWN"). The rating actions follow the downgrade of Portugal's sovereign rating to "BBB-"/RWN.

Fitch considers the direct impact of the rationale for the sovereign rating downgrade to be limited for EDP's business profile at this stage.

The "BBB+' rating reflects EDP's standalone credit profile, which is currently two notches higher than that of the sovereign.

The RWN indicates a heightened probability of a downgrade over the next three to six months, mainly as a result of a potential further sovereign rating downgrade. Fitch expects the notching difference to widen if sovereign ratings are further downgraded.

EDP – Energias de Portugal, S.A.