After analysing the solution to reduce mandatory procurement component proposed by the Ministry of Economics on 29 August, as well as its’ impact on Latvenergo Group, the international credit rating agency Moody’s has kept unchanged the company’s credit rating – Baa2, stable. According to the agency, the impact of the capacity payment restructuring is mitigated by significant financial flexibility.

Moody’s emphasizes that the rating is unaffected because it is expected that Latvenergo will be able to maintain adequate financial flexibility and key financial metrics in line with guidance for the current rating.

“Latvenergo has historically met all applicable financial covenants under its debt terms and given its current strong financial profile we do not see any near term pressure on its ability to remain within its covenant limits following the transaction.

The company's financial strength has grown in recent years, reflecting an improved performance of Latvenergo's generation, trade and supply activities in the wake of retail market liberalisation in 2015, and recent favourable changes to the regulatory framework for electricity distribution and transmission activities,” it is said in Moody’s announcement.

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 lease of transmission system assets. Latvenergo Group is the leader in the Baltic electricity supply. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several times. 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 (lease 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).