Fitch raises Orkuveita Reykjavikur to BB

Fitch Ratings said it upgraded Orkuveita Reykjavikur's long-term issuer default rating to BB from BB-.

The outlook is stable.

Fitch said the upgrade reflects the company's progress on deleveraging, aided by improved macroeconomic conditions in Iceland (BBB+/positive) and the significant appreciation of the Icelandic Krona (ISK), the company's track record in outperforming targets on the 2011-2016 business plan and expected continued shareholder support, including parent guarantees on debt.

The stable outlook takes into account the steady regulatory environment and the company's remaining high exposure to market risks and high financial leverage, the agency added.

© 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.