Riga, 2015-02-17 14:21 CET (GLOBE NEWSWIRE) -- According to the international credit rating agency Moody’s Investors Service (Moody’s) report published on 16 February 2015, the credit rating of Latvenergo AS has been upgraded to Baa2, stable. Emphasizing the upgraded credit rating of the Republic of Latvia to A3 in the credit research, the international credit rating agency accents the importance of Latvenergo AS to Latvia’s economy, particularly in the circumstances of liberalization of the electricity market. The agency comments that the Group’s strong position in the domestic market, competitive and environmentally clean electricity production, and stable cash flow from transmission and distribution activities are the factors contributing to the stable credit rating.
Zane Kotāne, Member of the Management Board of Latvenergo AS, CFO: “The upgrade of the international credit rating of Latvenergo AS is an assessment which indicates confidence in the company’s current development, involving improvement of corporate governance and active presence in the Baltic electricity market. Daily work, which so far has provided a stable credit rating and its upgrade at the time when Latvia’s economy as a whole is experiencing an upturn, must be continued under conditions of ever-growing challenges.
In assessing the challenges and risks that could affect the Group’s credit rating in the future, Moody’s emphasizes the need for successful operation in the open electricity market, effective development and use of the production capacities, further integration with the Nordic electricity markets, as well as balanced development of the regulated market segment, including stabilization of regulatory principles in the distribution segment. These aspects have already been defined as the strategic objectives of the Group’s activities until 2016.”
The credit rating Baa2, stable, confirmed by Moody’s facilitates the attraction of funding for implementation of the investment programme. The assigned credit rating is an important factor that proves a good standing at the level of the entire Baltic market.
Latvenergo AS is the only company in Latvia outside the banking sector which has been rated by Moody’s Investors Service with the investment grade rating. Credit ratings from the internationally recognized credit rating agencies are used by local and international financial institutions and other stakeholders to assess the risks associated with the company’s financial stability, reliability and future prospects. The agency Moody’s Investors Service has assigned the credit rating to Latvenergo AS since 2004, and since March 2010 the rating has been Baa3 with stable outlook.
The credit research published by Moody’s Investors Service regarding the upgrade of the credit rating is available at www.latvenergo.lv/eng/investors/rating.
Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 67 728 239
E-mail: investor.relations@latvenergo.lv
About Latvenergo
Latvenergo Group is a pan-Baltic energy company, engaging in electricity and thermal energy generation and supply, electricity distribution services and management of transmission system assets. Latvenergo Group holds one-third of the entire Baltic electricity market, thus ensuring its leadership in the Baltic electricity supply. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several years in a row. International credit rating agency Moody’s has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.
Latvenergo Group includes the parent company Latvenergo AS (electricity and thermal energy generation and supply) and its subsidiaries Latvijas elektriskie tīkli AS (management of transmission system assets), Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (electricity supply in Estonia), Elektrum Lietuva UAB (electricity supply in Lithuania), Enerģijas publiskais tirgotājs AS (administration of electricity mandatory procurement process) and Liepājas enerģija SIA (electricity and thermal energy generation and supply), as well as Elektrum Latvija SIA (electricity supply), a subsidiary of Elektrum Eesti OÜ.