Fitch Upgrades Orkuveita Reykjavíkur to ‘BB’;
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Reykjavík, 2017-02-10 18:11 CET (GLOBE NEWSWIRE) -- Fitch Ratings has upgraded Orkuveita Reykjavíkur's (OR; Reykjavik Energy) Long-term Issuer Default Rating to ‘BB’ from 'BB-'. The Outlook is Stable.
According to Fitch‘s attached release, the upgrade reflects the company's progress on debt reduction aided by improved macroeconomic conditions in Iceland and the significant appreciation of the Icelandic Krona, the company’s proven track record in outperforming targets on the 2011-2016 business plan and expected continued shareholder support including parent guarantees on debt.
The Stable Outlook takes into account the steady regulatory environment and the company’s remaining high exposure to market risks and its high financial leverage.
Ingvar Stefánsson, CFO:
It is encouraging to see this recognition of things going well. Our operations are solid so favourable externalities are reflected in improved finances. Our reduction of tariffs for some of the utility services, at the beginning of the year, revealed how our customers benefit from improved performance by OR and its subsidiaries.
Contact: Ingvar Stefánsson CFO +354 516 6100
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