International credit rating agency Moody's has affirmed the credit rating of Latvenergo AS - Baa2, stable. The rating confirms that Latvenergo AS is a stable and safe borrower, ensuring opportunities to source borrowings on favourable terms.

By affirming the credit rating of Latvenergo AS, Baa2, stable, international credit rating agency Moody’s emphasises that the company has been able to maintain the proper positive financial profile commensurate with its current credit rating despite the low power prices and the risk that they could remain at the same level.

According to the Moody’s data, from November 2015 to early February 2016, average power prices in Nord Pool Spot fell by 26%. Although Moody’s anticipates prices to recover over the longer term, the prolonged period of low prices will negatively affect the producers of electricity in the Nordic, and thus also the Baltic, electricity market.

By affirming the said credit rating, the agency particularly appreciated the financial flexibility of Latvenergo AS to withstand a potential prolonged period of low power prices. Moody’s also forecasts that the company will retain a positive financial standing in changeable conditions of the Baltic electricity market.

“The credit rating of Latvenergo AS – Baa2 – is a proof to the investors that we are a stable and safe borrower, it gives us the opportunity to source borrowings on favourable terms and thus finance investments in generation, development of the grid. It is also confirmed by the green bonds we issued last year resulting in more than 20% of total borrowings or 180 million euro raised in the form of bonds,” comments Guntars Baļčūns, Chief Financial Officer and Member of the Board of Latvenergo AS.

Additional information:

Jānis Irbe
Group Treasurer
Phone: +371 67 728 239
E-mail: investor.relations@latvenergo.lv

www.latvenergo.lv

About Latvenergo

Latvenergo Group is a pan-Baltic energy company, engaging in electricity and thermal energy generation and supply, electricity distribution services and management of transmission system assets. Latvenergo Group holds one-third of the entire Baltic electricity market, thus ensuring its leadership in the Baltic electricity supply. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several years in a row. International credit rating agency Moody’s has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.

Latvenergo Group includes the parent company Latvenergo AS (electricity and thermal energy generation and supply) and its subsidiaries Latvijas elektriskie tīkli AS (management of transmission system assets), Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (electricity  supply in Estonia), Elektrum Lietuva UAB (electricity supply in Lithuania), Enerģijas publiskais tirgotājs AS (administration of electricity mandatory procurement process) and Liepājas enerģija SIA (electricity and thermal energy generation and supply), as well as Elektrum Latvija SIA (electricity supply), a subsidiary of Elektrum Eesti OÜ.