Landsvirkjun's liquidity position is solid
At year end 2009, Landsvirkjun´s liquidity amounted to USD 415 million, whereof cash on hand was USD 135 million and an undrawn revolving credit facility amounted to USD 280 million. The Company already has access to liquidity, which in addition to cash from operation will ensure that the Company is able to meet all existing obligations into 2012. Landsvirkjun will publish its annual report for 2009 in mid March.
Landsvirkjun´s credit rating is unchanged
The credit rating of the Republic of Iceland changed as a result of the president's decision not to sign the parliament´s Icesave legislation. Fitch rating downgraded Iceland's Long-term foreign rating to BB+ from BBB-. At the same time Standard & Poor´s put the credit rating of the Republic on credit watch with a negative outlook. Despite these changes Landsvirkjun´s credit rating with S&P is unaffected at BB (stable outlook).
Landsvirkjun has the credit rating Baa3 (negative outlook) with Moody´s, which is investment grade. Landsvirkjun´s loan and bond agreements include no clauses that call for amendments or termination of outstanding bonds in the event of a downgrade of Landsvirkjun's ratings. The recent downgrade in the Republic's credit rating has therefore no affect on interest rates on outstanding bonds. However, ceteris paribus, the rating action is likely to negatively affect Landsvirkjun´s access to new debt on acceptable terms in the near term.
Press release