Reykjavik, 2015-12-02 23:38 CET (GLOBE NEWSWIRE) -- Improved operational performance, strengthened liquidity position, effective cash management, and reduced financial leverage are among the rationale Moody’s gives for its upgrade of Orkuveita Reykjavíkur’s (OR, Reykjavík Energy) issuer rating to Ba3 from B1 with a stable outlook.
The attached rating action proceeds from the following paragraphs:
The upgrade of OR's issuer rating to Ba3 reflects the progress the company has made with regard to improving its operational performance, strengthening its liquidity position and reducing financial leverage against the background of an improving macroeconomic environment and market conditions in Iceland. It also takes into account of Moody's expectation that OR should be able to maintain its improved financial profile and better withstand adverse aluminium, foreign exchange and interest rate movements.
OR's financial profile has improved as a result of the company's successful execution of a five-year plan approved by the board of directors in March 2011. The company has outperformed against almost all targets, including those to increase revenues, reduce costs, and postpone certain investments. Overall, OR has already exceeded the Plan's goals more than one year ahead of its intended completion date in December 2016.
Contact:
Ingvar Stefansson
CFO
+ 354 516 6100
