Moody’s revises Fingrid to positive

Moody's Investors Service said it changed the outlook on the A1 issuer and senior unsecured ratings of Fingrid Oyj and the provisional A1 euro medium-term note program rating to positive from stable.

Concurrently, the agency affirmed these ratings, along with the short-term P-1/provisional P-1 ratings.

The outlook change follows changes to the calculation of the company's allowed regulatory return for the 2016-23 regulatory periods and visibility over the 2016 dividend.

"The positive outlook for Fingrid's A1 rating reflects our view that (1) operating cash flows will continue to improve as result of the changes in the way allowed returns are calculated for the 2016-23 regulatory periods and (2) with modest investment needs, the company will maintain a solid financial profile despite most of these higher earnings being paid as dividends," Helen Francis, Moody’s vice president, senior credit officer and lead analyst for Fingrid, said in a news release.

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