On 19 March the international credit rating agency Moody's has affirmed the credit rating of Latvenergo AS on the investment grade Baa2 level with stable outlook.

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 Latvenergo 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);
• the investment program by renovating production facilities and networks and improving the possibilities of interconnections.

Latvenergo AS is the only company in Latvia to which an investment grade rating has been assigned by an internationally recognised credit rating agency outside the financial sector used by local and international financial institutions and other stakeholders for evaluating the stability, reliability and future perspectives of Latvenergo Group. 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.

The credit rating published by Moody's is available on the website of Latvenergo AS in the section Investors/ Rating. 

Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 67 728 239
E-mail: investor.relations@latvenergo.lv

www.latvenergo.lv

About Latvenergo

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. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several times. International credit rating agency Moody’s has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.

Latvenergo Group is comprised of the parent company Latvenergo AS (generation and trade of electricity and thermal energy, trade of natural gas) and seven subsidiaries - Latvijas elektriskie tīkli AS (lease of transmission system assets), Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (trade of electricity and natural gas in Estonia), Elektrum Lietuva UAB (trade of electricity and natural gas in Lithuania), Enerģijas publiskais tirgotājs AS (administration of mandatory electricity procurement process) and Liepājas enerģija SIA (generation and trade of thermal energy in Liepaja, electricity generation). All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.