Moody’s affirms the credit rating of Latvenergo AS
OREANDA-NEWS. By affirming the credit rating of Latvenergo AS, Baa2, stable, international credit rating agency Moody’s emphasises that the company has been able to maintain the proper positive financial profile commensurate with its current credit rating despite the low power prices and the risk that they could remain at the same level.
According to the Moody’s data, from November 2015 to early February 2016, average power prices in Nord Pool Spot fell by 26%. Although Moody’s anticipates prices to recover over the longer term, the prolonged period of low prices will negatively affect the producers of electricity in the Nordic, and thus also the Baltic, electricity market.
By affirming the said credit rating, the agency particularly appreciated the financial flexibility of Latvenergo AS to withstand a potential prolonged period of low power prices. Moody’s also forecasts that the company will retain a positive financial standing in changeable conditions of the Baltic electricity market.
“The credit rating of Latvenergo AS – Baa2 – is a proof to the investors that we are a stable and safe borrower, it gives us the opportunity to source borrowings on favourable terms and thus finance investments in generation, development of the grid. It is also confirmed by the green bonds we issued last year resulting in more than 20% of total borrowings or 180 million euro raised in the form of bonds,” comments Guntars Ba???ns, Chief Financial Officer and Member of the Board of Latvenergo AS.