Reykjavik, 2014-12-08 18:53 CET (GLOBE NEWSWIRE) -- Moody’s Investors Service has today revised the outlook on Reykjavik Energy’s (Orkuveita Reykjavikur) B1 issuer rating to positive from stable. Concurrently, Moody's has affirmed this rating.
In its release, Moody‘s acknowledges the progress Reykjavik Energy has made with regard to strengthening its financial and liquidity profile over recent years and the increased likelihood that the company will meet Moody’s ratio guidance for a rating’s upgrade.
The Company‘s management is commended for its commitment to the implementation of a five-year plan approved by the board of directors in March 2011. The company has outperformed all targets, including increasing revenues, reducing costs and the challenge of sale of assets, which has returned revenues as planned.
Exchange rate risk remains a challenge for Reykjavik Energy, according to Moody‘s, but liquidity has improved owing to the company’s accurate cash management and hedging agreements.
Attached is Moody‘s release.
