S&P: Eesti, Lietuvos unaffected

Standard & Poor's said the decision to go ahead with the construction of the Estlink subsea cable between Estonia and Finland will have no ratings implications for Eesti Energia AS (A-/negative/--) and Lietuvos Energija (BBB/positive/A-2).

S&P said the negative financial impact from the several pro rata-based guarantees provided by the shareholders for the €84 million bank loans to be incurred by Nordic Energy Link is not material enough to have any ratings implications and is already partly factored into the ratings.

The subsea cable will allow power exports from the Baltic region to the higher-priced Nordic power market, while increasing the security of supply in the Baltic States, according to S&P.

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