Standard & Poor’s changes Statnett’s long term credit rating from AA to A+
(1/15/2010)
Standard & Poor’s has changed Statnett’s long term credit rating from AA to A+. At the same time, short-term issuer rating is changed from A-1+ to A-1. Outlook is stable.
Statnett has been under review for possible downgrade for three months. The decision to downgrade Statnett is due to an increase in planned investments and expected debt increase, as well as the rejection by the Norwegian Government of a 4 billion equity injection applied for in 2009.
According to Standard & Poor’s press release, ratings continues to reflect Statnett’s favourable tariff structure and excellent business risk profile as the monopoly electricity-transmission system operator in the prosperous and stable Kingdom of Norway, and the assessment of a “very high” likely hood of timely and sufficient extraordinary state support in the event of financial distress.
Future capital injection, from the owner, or scaling down of the investment program are actions that according to Standard & Poor’s could lead to a positive rating action in the future.
Statnett’s long term credit rating:
Standard & Poor’s: A+ (14. January 2010)
Moody’s: A2 (16. December 2009)
Press release Standard & Poor's
