S&P Global Rating changes Landsvirkjun‘s outlook from stable to positive


BBB+ Credit Rating affirmed

S&P Global credit rating agency has changed Landsvirkjun‘s outlook from stable to positive and affirmed Landsvirkjun‘s credit rating of BBB+.

According to S&P the change of outlook to positive acknowledges the progress Landsvirkjun has made in strengthening its financial profile and deleveraging. Other positive factors that influence S&P’s rating opinion are vastly improved operating performance, strong cash generation and access to low-cost renewable generation asset base. Additional influential factor for S&P’s is its recent revision of outlook for Iceland from stable to positive.

Furthermore, the positive outlook indicates that S&P could upgrade Landsvirkjun if S&P were to take a similar action on Iceland and if Landsvirkjun continued to show strong cash flow and leverage KPIs.

Hörður Arnarson, CEO:

“This is good news for Landsvirkjun and an important step to improve the company’s access to international capital markets. This positive development follows our clear operating goals, renegotiations with most of our largest customers and improved financial strength of the company in the recent years.

We expect this development will continue in the years to come”.