Moody’s upgraded, on Friday, the “Baa3” rating outlook for Transelectrica from negative to stable, forecasting that, despite lower financial results in 2009 and 2010, the cash flow generated will remain solid, Mediafax reports. The company will be able to maintain cash flow at a steady level with support from the National Energy Regulatory Agency (ANRE), which hiked energy transport fees by 5 per cent in 2010, and a renewed hiking, by 11 per cent, is expected in 2011. Other factors mentioned by Moody’s are the reduction of investments planned for the next four years and the anticipated stabilisation of electrical power consumption in Romania, after the steep fall reported in 2009, Richard Miratsky, deputy president at Moody’s and main analyst for Transelectrica, stated. “Furthermore, the drop in profitability was partially determined by the influence of the exchange rate, leading to the re-evaluation of foreign currency debts, but the capital flow and debts remained at an acceptable level for a company which operates electrical power networks,” Miratsky added. Moody’s warns that, although the leu reached a certain amount of stability in the course of this year, Transelectrica’s financial profile remains vulnerable to exchange rate fluctuations, as 90 per cent of its debts are in foreign currency. For this reason, any possible depreciation of RON could have a negative impact on cash flows, as a consequence of the rising costs of debts.