S&P upgrades Landsvirkjun

S&P said it raised the long-term issuer credit ratings on Landsvirkjun to BBB from BBB-, along with the short-term issuer credit ratings to A-2 from A-3.

The outlook is stable.

S&P also said it raised the rating on Landsvirkjun's senior unsecured debt to BBB from BBB-.

The upgrades follow a similar rating action on Iceland, which was recently upgraded to A-, the agency said.

The ability of the sovereign to support Landsvirkjun in case of financial stress has increased, S&P said.

Landsvirkjun continues to be viewed as a government-related entity that benefits from a very high likelihood of timely and sufficient extraordinary government support, if needed, the agency said.

The company plays a very important role in the country given its dominant position as the incumbent power company and 64.7% owner of the national transmission grid, S&P said.

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