S&P revises Lietuvos Energija view to negative

S&P said it revised its outlook on Lietuvos Energija UAB (LE) to negative from stable and affirmed its BBB+ ratings on the company.

S&P also affirmed the BBB+ long-term rating on LE's senior unsecured bonds.

“The outlook revision reflects the deterioration in LE's stand-alone financial performance. In 2018, the company's financial metrics were weaker than we had anticipated, primarily because of higher-than-expected purchased electricity prices, lower generation volumes, higher capital expenditure (capex) on green energy and grids, and small acquisitions in wind farms,” S&P said in a news release.

“Because LE is currently going through a heavy investment period, we expect FFO to debt to stay below 23% in 2019 (debt to EBITDA close to 5x) which is threshold for BBB+ rating.”

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