Moody’s: Solveig Gas outlook to stable

Moody's Investors Service said it affirmed the Baa2 rating of the $650 million 4% senior secured notes due 2027 of Solveig Gas Norway AS.

Concurrently, the agency affirmed the Baa2 rating of the NOK 1 billion 5.32% senior secured bond due 2027 issued under its NOK 12 billion euro medium-term note program rated provisional Baa2.

The outlooks were changed to stable from negative.

Moody’s said the outlook change reflects the recent conclusion of the restructuring of the company's facilities to ensure (a) a stronger and more stable Debt Service Cover Ratio of at least 1.4 times over the life of Solveig's license which Moody's believes is commensurate with the current rating; and (b) the removal of refinancing risk.

A strengthening of Solveig's financial profile was required in order to stabilize the rating following the Ministry of Petroleum's decision to confirm tariff reductions on new bookings for the transmission of gas after May 2013 to take effect from Oct. 1, 2016, the agency said.

© 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.