Reykjavík, 2017-06-15 14:20 CEST (GLOBE NEWSWIRE) -- Moody’s Investors Service has today changed the outlook on Orkuveita Reykjavíkur’s (OR; Reykjavík Energy) Ba2 rating to positive from stable.

The change of outlook to positive recognizes the progress OR has made with regard to improving its operational performance, reducing its financial leverage and strengthening its liquidity profile over recent years and the increased likelihood that the company will meet Moody’s ratio guidance for a rating upgrade in near future.

OR’s financial profile has improved as a result of the company’s strict implementation of a five-year plan approved by the board of directors in March 2011. Owing to a very strong commitment from management, the company outperformed the targets well in advance of the completion date in December 2016. Moody’s expects that the company will continue to maintain a prudent cash management and hedging policy, which provides greater visibility over funding and helps the company to partially reduce its interest rate, exchange rate and commodity risks.

         Ingvar Stefansson
         CFO + 354 516 6100