Moody’s Investors Service (Moody’s) today assigned a Baa3 long-term issuer rating to Reykjavík Energy (Orkuveita Reykjavíkur; OR) with a stable outlook. That puts OR into investment grade in rating.
The upgrade to Baa3 principally reflects an improvement in the company’s underlying credit quality, as represented by a ba1 baseline credit assessment (BCA), upgraded from ba2, which in turn reflects the company’s strong operating performance, significant improvements in aluminium prices, and an improved balance between earnings and liabilities denominated in foreign currencies. Financial strategy and risk management, including the management of foreign exchange risks, is a governance consideration under Moody’s methodology for assessing ESG risks.
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