Moody’s ups Orkuveita Reykjavikur

Moody’s Investors Service said it upgraded to Ba1 from Ba2 the corporate family rating of Orkuveita Reykjavikur and changed the outlook to stable from positive.

The agency said the upgrade reflects the continuous progress the company has made with regard to reducing its financial leverage and improving its liquidity position and diversifying its funding sources.

It also takes into account Moody's expectation that the company should be able to maintain its improved financial profile and continue to benefit from the positive macroeconomic dynamics in Iceland, which should drive demand growth for utility services, the agency said.

The standalone credit strength, which is represented by a ba2 baseline credit assessment, upgraded from ba3, positively reflects the company's strong market position and strategic importance to Reykjavik, and Iceland more broadly, as the provider of essential utility services to almost 70% of Iceland's population.

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