3 Sep 2012
Standard & Poor´s Confirmed Eesti Energia’s Rating at High Level
On Friday, international rating agency Standard & Poor’s (S&P) assigned Estonian power generation company Eesti Energia a credit rating of BBB+; the outlook of the rating is stable.
S&P emphasises that the rating is based on the satisfactory business risk profile and intermediate financial risk profile of the company. The rating report highlights the stable cash flow and dominant market position of the company in Estonia. The rating of Eesti Energia is supported by the opinion of the credit agency that, if necessary, the government would provide the company with timely and sufficient extraordinary support in the event of financial distress.
Eesti Energia received its first credit rating in 2002, when the rating agencies Moody’s Investor Service and Standard & Poor’s assigned to Eesti Energia the ratings Baa1 and A-, respectively, for long-term liabilities. The rating of Eesti Energia was A- from July 2002 until July 2010, after which S&P assigned Eesti Energia the credit rating BBB+.