S&P ups Lietuvos Energija to A-

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

The outlook is stable.

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

The ratings reflect the company's position as Lithuania's monopoly transmission system operator, strong and stable cash flows and a sound operating track record in recent years, S&P said, adding that the ratings also are supported by the benign and transparent regulatory regime under which Lietuvos Energija operates and its robust financial profile.

These strengths are offset by the company's exposure to Lithuania's transition-economy features and its reliance on foreign currency-denominated bank debt, the agency said.

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