S&P cuts Eesti to stable

Standard & Poor's said it revised the outlook on Eesti Energia AS to stable from positive.

The company's BBB+ long-term corporate credit rating was affirmed.

The affirmation and outlook revision follows the upgrade of the Republic of Estonia and a review of Eesti Energia's stand-alone credit profile, which is now considered to be BBB compared with the previous assessment of BBB+, S&P said.

The ratings reflect the moderately high likelihood that the Estonian government would provide timely and sufficient extraordinary support in the event of financial distress, the agency said.

The ratings also consider its dominant position in the Estonian power market, vertically integrated operations and its share of stable cash flow from regulated network activities, S&P added.

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