S&P affirms Eesti Energia

Standard & Poor's said it affirmed its A- long-term corporate credit rating on Estonia-based Eesti Energia AS.

The outlook is stable.

The rating reflects the company's strong business risk profile, which is supported by its transmission and distribution monopolies, and its dominant position in electricity generation and supply in Estonia, S&P said.

The rating also reflects the strong likelihood of increasing export revenues from early 2007, when the Estlink subsea cable to Finland is planned for commissioning, and the company's strengthened position as a regional electricity exporter following the planned closure of the Ignalina NPP nuclear power station in Lithuania, the agency said.

These strengths are offset by Eesti Energia's reliance on Estonia's small electricity market and the risk, albeit decreasing, of political interference in tariff setting and structural features.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.