S&P raises Lietuvos Energija

Standard & Poor's said it raised its long-term corporate credit rating on Lietuvos Energija to BBB+ from BBB and affirmed the A-2 short-term corporate credit rating.

The outlook is positive.

S&P said the upgrade reflects the company's continued strong financial profile, stable operational performance, and improvements in the underlying business risk environment.

The ratings on Lietuvos Energija reflect its position as Lithuania's monopoly transmission system operator, generating strong and stable cash flows, and its sound operating track record in recent years. The ratings are also supported by the benign and transparent regulatory regime under which the company operates, and its robust financial profile. These strengths are mitigated by the company's exposure to the risks of operating in an economy weaker than the EU average, and its reliance on foreign-currency bank debt.

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