On 8 August 2013, the international credit rating agency Moody’s Investors Service (Moody’s) published a comment on a reduction in subsidies for cogeneration plants envisaged by amendments to the Regulation No 221 approved by the Cabinet of Ministers of the Republic of Latvia on 30.07.2013, a proposed introduction of a subsidised energy tax in Latvia and the impact of these changes to Latvenergo AS operation.

Moody’s published comment does not indicate a reduction in Latvenergo AS credit rating due to the made and planned changes in the legislation, as assigning the credit rating a variety of factors characterizing the company's financial stability, market position and economic environment are taken into account.

Latvenergo AS reiterates that the company plans to adjust its CHP plants operation modes not to have a material negative impact on Latvenergo Group financial results and the assigned credit rating (Baa3 stable) resulting from the changes made to the support mechanism.

Moody’s comment is available at www.latvenergo.lv/investors/eng section Announcements.

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

www.latvenergo.lv/investors/eng

About Latvenergo:

The Latvenergo Group is the largest power supply merchant in the Baltics, engaging in electricity generation and trade as well as providing electricity distribution and management of transmission system assets. Latvenergo holds one-third of the entire Baltic electricity market. 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 Baa3/stable.

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