Reykjavik, 2013-12-16 12:20 CET (GLOBE NEWSWIRE) -- Moody’s Investors Service has today affirmed the B1 issuer rating of Reykjavik Energy (Orkuveita Reykjavikur) and changed the rating outlook to stable from negative.
In Moody’s rationale is stated that the rating recognises OR’s improved access to liquidity and the progress the company has made with regard to strengthening its financial profile over the past two years and it hails RE’s “very strong management commitment” in implementing the Company’s strict five-year Plan, intended to turn around the operations.
In the attached release, Moody’s recognises that the biggest challenge for RE has been around executing asset sales. RE has managed to sell assets for a total of ISK 7.4 billion, which is close to the company’s target of ISK 8.1 billion set for the years 2011-13.
It may be added that the sale of Reykjavik Energy’s shares in HS Veitur in the amount of ISK 1.5 billion is now for confirmation by RE’s owners.
Moody’s notes, in the release, that statutory unbundling of Reykjavik Energy’s operations, which is to be completed by January 1st 2014, does not affect RE’s rating.