Iseteenindus

Moody's Investor Service changed Eesti Energia credit rating

13.07.2010
Moody's Investor Service downgraded today the long-term corporate credit rating of Eesti Energia from A1 to A3 and the short-term issuer rating to Prime-2 from Prime-1. The outlook of the rating is stable.

The downgrade reflects an adjustment to Moody's assumption of probability of government support for Eesti Energia to medium from high, which has been reflected in the separation of transmission system operator Elering from Eesti Energia group in January 2010, discussions over the optimal financing of Eesti Energia and opening of Estonian electricity market. According to the rating agency the reduction of government support to the Group is the main reason behind the two-notch downgrade. Eesti Energia's standalone credit profile remains unchanged (equivalent to Baa1), supported by strong financial performance during the last financial year and strong liquidity position.

The downgrade does not have a material impact on the financial viability or debt capacity of Eesti Energia. The stable outlook takes into consideration the implementation of investment plan and equity injections.

Eesti Energia achieved its first credit rating in 2002, when Moody's Investor Service and Standard & Poor's assigned a long-term corporate credit rating of Baa1 and A- respectively. In 2006 Moody's raised the credit rating to A1 level and in 2007 changed the credit rating outlook to negative. Standard & Poor's Ratings Services changed the long-term corporate credit rating of Eesti Energia by one notch to BBB+ (stable outlook) last week.

Marina Bachmann
press officer
Eesti Energia AS
Tel: 71 51 218
GSM: 56 456 600
marina.bachmann@energia.ee