OREANDA-NEWS. On 8 August 2013, the international credit rating agency Moody's Investors Service (Moody's) published a comment on a reduction in subsidies for cogeneration plants envisaged by amendments to the Regulation No 221 approved by the Cabinet of Ministers of the Republic of Latvia on 30.07.2013, a proposed introduction of a subsidised energy tax in Latvia and the impact of these changes to Latvenergo AS operation.

Moody's published comment does not indicate a reduction in Latvenergo AS credit rating due to the made and planned changes in the legislation, as assigning the credit rating a variety of factors characterizing the company's financial stability, market position and economic environment are taken into account.

Latvenergo AS reiterates that the company plans to adjust its CHP plants operation modes not to have a material negative impact on Latvenergo Group financial results and the assigned credit rating (Baa3 stable) resulting from the changes made to the support mechanism.