Standard & Poor’s changes Statnett’s credit rating
(1/30/2009)
Standard & Poor's Ratings Services has lowered its long-term corporate credit rating on Statnett SF to 'A+' from 'AA-'. At the same time, Standard & Poor's lowers the short-term corporate credit rating from ‘A-1+’ to ‘A-1’. The outlook is stable.
According to Standard & Poors the ratings continues to reflect Statnett’s excellent business profile as the monopoly electricity-transmission system operator in the prosperous and stable Kingdom of Norway (AAA/Stable/A-1+), in addition to state support. The ratings also benefit from a more favorable tariff structure that was implemented in 2007.
The rating action reflects Standard & Poor’s expectations that Statnett’s financial ratios will remain weak over the medium term as a result of its significant investment plans which will be largely dept funded. Statnett is targeting about NOK 23 billion of capital investments through 2018 of which NOK 12 billion are investments through 2013.
In December 2008 the Norwegian Water Resources and Energy Directorate removed the two year time lag on compensation of investments. This will allow Statnett to make more timely recovery of investments, and is furthermore expected to lead to more stable revenues in the medium to long term. However, according to Standard & Poors, the negative effects from the dept funded investment program will only partly be mitigated by this regulatory revision.
Contacts:
Marie Jore Ritterberg
Chief Financial Officer
Mobile: +47 22 52 70 05
Tor Inge Akselsen
Senior Vice Precident
Mobile: +47 950 79 520
