International credit rating agency Moody’s has affirmed the credit rating of Latvenergo AS – Baa2, stable. The rating has been unchangeably stable for several years, confirming consistency within operations and financial soundness of the company.
By affirming the credit rating of Latvenergo AS, Moody’s has taken in consideration the recent restructuring in capacity payments and the respective capital release. As strong points of Latvenergo Group Moody’s emphasises its operations not only in Latvia, but also on the Baltic scale; its cost competitive and environmentally clean hydro generation asset base; contribution from regulated distribution and transmission segment operations as well as solid financial profile that provides a cushion against adverse market changes.
Latvenergo AS is the only company in Latvia outside the financial sector which has been rated by Moody’s Investors Service with the investment grade rating. Credit ratings from internationally recognized credit rating agencies are used by local and international financial institutions and other stakeholders to assess the risks associated with the company’s financial stability, reliability and future prospects. Moody’s has assigned the credit rating to Latvenergo AS since 2004, and since February 2015 the rating is Baa2 with stable outlook.