Moody's may cut Eesti Energia

Moody's Investors Service said it placed the A1 long-term ratings of Eesti Energia AS on review for possible downgrade.

The rating action follows the Estonian government's announcement that it was considering a partial privatization as one of its options for increasing the company's equity and the recently executed separation of Eesti Energia's transmission assets, which Moody's said in its view implies a potential decrease in the level of government support currently factored into the rating.

The review will focus on an assessment of the appropriate level of government support, taking into account a range of factors including the future direction of the company's ownership, the agency added.

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