In a move that solidifies the transformation of Greek entrepreneurship following the decade-long economic crisis, S&P Global Ratings has announced the upgrade of GEK TERNA to investment grade (BBB-). This development is not merely a reward for George Peristeris' management; it is a resounding confirmation that Greek groups can now stand with distinction in the international financial arena, enjoying the trust of the market's most stringent critics.
Concessions as a Pillar of Stability
In its report, S&P places particular emphasis on the group's "strong business profile," which is anchored by an impressive portfolio of concessions. The acquisition of Attiki Odos for the next 25 years, combined with Egnatia Odos and the new Kastelli airport in Crete, creates a stream of predictable and stable cash flows that act as a buffer during periods of economic uncertainty.
According to analysts, GEK TERNA's model has shifted from traditional construction—characterized by volatility—toward a high-performance asset management model. This "predictability" is the holy grail for rating agencies, as it ensures debt servicing even under pressure. GEK TERNA now possesses the largest concession portfolio in Greece and one of the largest in Southeast Europe, providing it with a competitive edge over its rivals.
"The upgrade reflects our conviction that the group will continue to generate strong EBITDA, supported by its diversified infrastructure portfolio," S&P notes in its analysis.
Energy Transition and Synergies
Beyond infrastructure, GEK TERNA remains a central player in the country's energy transition. Despite strategic restructuring moves in the Renewable Energy Sources (RES) sector, the group maintains a strong presence in energy production and supply. The synergy between TERNA's construction activities and energy projects allows the group to control costs and ensure the execution quality of major projects, such as gas-fired power plants and pumped-storage projects.
S&P recognizes that the group's strategic choice to invest in sectors aligned with European policies for green growth and digital convergence strengthens its long-term viability. The group's ability to raise capital from international markets on favorable terms—now bolstered by the investment grade—will serve as the "fuel" for a new generation of investments exceeding €10 billion.
Economic Impact and International Competitiveness
What does investment grade practically mean for GEK TERNA? Firstly, a drastic reduction in borrowing costs. With a 'BBB-' rating, the group enters the radar of major institutional investors, pension funds, and insurance companies that are constitutionally bound to invest only in investment-grade securities. This means greater liquidity and lower interest rates on future bond issuances.
Secondly, the upgrade serves as a certificate of credibility for international tenders. When GEK TERNA competes for projects abroad or partners with international giants, the S&P seal of approval acts as a guarantee of solvency. In an era where geopolitical tensions increase country risk, GEK TERNA manages to partially decouple itself from Greek risk, demonstrating independent financial robustness.
Finally, this development has broader implications for the Greek economy. The existence of "national champions" with investment-grade status enhances Greece's image as an investment destination. It proves that the domestic ecosystem can produce exemplary companies that rival their counterparts in France, Spain, or Italy. With a record-breaking project backlog, GEK TERNA appears ready to lead the country's reconstruction over the next decade.
