Energy, Good for Business, Latvia, Rating

Latvenergo said that despite global and regional operation environment factors, like increase of prices of electricity, natural gas and CO2 emission allowances, which had a negative impact on the financial results of Latvenergo Group in 2018, the rating has been maintained constantly stable for several years attesting the stability and the financial reliability of the group.

Moody's, by reaffirming the credit rating of Latvenergo AS, has particularly appreciated the following in Latvenergo Group: successful operation and the competitive position not only on the Latvian, but also Baltic electricity market; the environmentally friendly share of HPP in the generation portfolio, as well as the highly efficient CHPP which allow securing substantial savings of primary energy resources in the country and to reduce the volume of CO2 emissions, thus contributing to the fulfilment of the European Union climate goals; the stable financial situation which has helped to secure against unfavourable market changes (for example, dry and hot weather conditions in Europe during the last year causing an unexpected electricity price increase); as well asthe investment program by renovating production facilities and networks and improving the possibilities of interconnections.

Moody's has been assigning the credit rating of Latvenergo AS every year since 2004 and it has been Baa2 with stable outlook since February 2015.

Latvenergo posted EUR 878.008 million in revenue last year, a decrease of 5.1% on 2017, while Latvenergo Group's profit amounted to EUR 75.955 mln - a decrease of 76.4%.

Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade, electricity distribution services and lease of transmission system assets.