Standard & Poor‘s credit rating agency have raised Landsvirkjun‘s long-term
credit rating from BB to BB+.
According to S&P the upgrade reflects the improved stand-alone credit profile
of Landsvirkjun, which is partly due to a gradual improvement in the stability
and predictability of the company‘s earnings, and partly because of
Landsvirkjun‘s focus on decreasing risk in its operations.
In Standard & Poor‘s view Landsvirkjun‘s financial risk profile is likely to
improve in the near furture, based on the company‘s operational results for the
first six months of 2010. Liquidity has improved and is no longer weighing on
the rating. Furthermore Landsvirkjun‘s reduced exposure to volatile aluminium
prices taking place through recent renegotiation with one of the company‘s
buyers, „should result in less volatile swings in the company‘s earnings and
cash flows“ says in S&P‘s press release. Finally Landsvirkjun‘s increased focus
on improving profitability is seen as positive by S&P.
Landsvirkjun‘s negative outlook reflects that on the Republic of Iceland.
More information:
Ragna Sara Jónsdóttir
yfirmaður samskiptasviðs Landsvirkjunar
sara@lv.is
+(354) 515 9000 / +(354) 849 2122
