Moody’s has assigned a A3 rating to long-term obligations of Elering

International credit rating agency Moody´s has assigned today a A3 rating to long-term obligations of Elering. The outlook on the long-term rating assigned is stable. A3 rating is a sign of the strong financial position of Elering and will support strategic investments needed for providing electricity security of supply. Estonia as a country has been assigned two ranks higher, A1 rating.

The A3 rating assigned to Elering reflects the low business risk profile of Elering’s regulated electricity transmission network operations in Estonia. The low business risk profile is based on the stable and predictable nature of Elering's cash flows from the company's regulated monopolistic transmission system operations. The A3 rating also reflects Elering's large capital investment programme that are projected to total EUR 475 million in 2011-2015 and will primarily relate to the expansion and reinforcement of the grid, international interconnectors and an increase in reserve capacity. There is also expected high probability of support from Elering's 100% owner, the Government of Estonia (rated A1 (stable outlook) by Moody's and A (positive outlook) by Standard & Poor's) in the event of financial distress.

Taavi Veskimägi, the CEO of Elering: "With the Moody's rating we want to increase Elering's international visibility and recognition. The A3 rating clearly reflects and highlights Elering's excellent performance and stability since its incorporation in January 2010. The rating will help Elering to complete Elering's investment programme by 2015."

Credit ratings assigned by Moody´s upwards of category Baa1 are assessed as high-quality and subject for interest to investors and also credit worthy. Moody´s has provided credit rating to over 50 regulated electricity and gas operators. Most of the rated firms are assigned the rating on the scale of Baa1 to A2 with average of A3.

Elering is an independent electricity transmission system operator in Estonia whose main duty is to guarantee high-quality electricity supply for Estonian consumers at all times. To ensure the sustainable functioning of security of supply as a crucial service, Elering maintains and develops a national transmission network and international connections. Elering is operating Estonian electricity system in real time by ensuring the operational reliability of the Estonian power system.