Landsvirkjun’s strategic importance to Iceland
Moody´s Ratings has upgraded Landsvirkjun’ s credit rating to A3 from Baa1. The outlook has been changed to stable from positive.
This rating upgrade follows the upgrade of the sovereign long-term issuer rating of the Government of Iceland to A1 from A2 on the 20th September 2024. Landsvirkjun´s rating incorporates an uplift for potential support from its owner, the Icelandic State. This factors in Landsvirkjun’s strategic importance to Iceland, given the company’s position as the country’s dominant power generator and the role it plays in providing electricity to energy intensive users, which directly contribute to around a third of Iceland’s exports.
According to Moody´s the credit rating acknowledges the company's strong position in the Icelandic power generation market and the strong financial profile now when Landsvirkjun is preparing new energy generation projects to meet increasing demand.
