MILAN, Dec 9 Reuters Credit ratings agency SP cut its outlook for Enel, citing execution risks around a 21billion euro 22.18 billion asset disposal plan the Italian utility announced last month.

The agency affirmed its 39;BBBA239; long and shortterm issuer ratings for the Romebased group, and its ratings on the company39;s debt.

Europe39;s secondbiggest utility in November pledged to focus on six core countries and sell assets to lower its net debt to 51 billion52 billion euros by the end of next year from 69 billion euros at endSeptember.

The negative outlook reflects that the company39;s large asset rotation plan is subject to execution risk while high capital expenditure and sizable shareholder remuneration are weighing on the group39;s financial risk profile, SP said in a statement.

According to SP calculations, which also take into account Enel39;s margin call requirements on energy derivative contracts, the group39;s adjusted net debt could peak in 2022 at about 82 billion euros.

The ratings agency calculates that the ratio between Enel39;s consolidated adjusted funds from operations FFO and its debt will remain below a 20 threshold in 2023.

SP added it would continue to monitor the group39;s efforts to reduce the ratio between net debt and its earnings before interest, taxes, depreciation and amortisation EBITDA to under 3 times.

An Enel spokesperson on Friday said the group39;s strategic plan envisaged a net debt reduction of around 9 billion euros…