Nordic Credit Rating (NCR) has assigned a 'BBB-' long-term issuer rating to Norwegian aerospace infrastructure company Andøya Space AS. The outlook is stable. An 'N3' short-term issuer rating reflecting expected improvements in the liquidity profile and a 'BBB-' senior unsecured issue rating has been assigned reflecting solid asset-backing and recovery prospects for senior unsecured bondholders following an issue.
Rating rationale
The long-term issuer rating reflects strong Norwegian government ownership with a focus on the most efficient and sustainable attainment of public policy objectives as a 'Category 2' holding as well as its importance for civil protection and emergency preparedness. It also considers Norwegian national security interests and increased commercialisation. The owners have track record of ongoing equity support, and we expect provision of additional funding if needed. The rating further reflects that the company receives national budget funding for certain operations, with the government acting as owner and regulator, and both the government and related entities acting as customers. The company's hedging support stable fixed-costs after ramp-up of capacity and reduces the risk of cost overruns.
The rating is constrained by the company's growing commercial exposure to the immature spaceport infrastructure industry, as well as its small scale, geographic concentration and dependence on a limited customer base although with some strong defence-related counterparties. The rating also reflects lower profitability and less predictable cash flows compared with infrastructure peers in more established markets, along with a higher risk of negative deviations. The company's high financial leverage and greater potential volatility in debt servicing relative to peers constrains the rating, though we expect owners to provide support if necessary.
Stable outlook
The stable outlook reflects our expectation that Andøya Space will remain important for attainment of public policy objectives and national security despite increased commercialisation. We also expect the company to have significant single-customer concentration with reliance on unprofitable companies in spaceport operations. We expect the company to expand its infrastructure without material cost overruns and manage increased staff costs in 2026 as it prepares for increased launch frequency which is expected by 2027. Our outlook incorporates the possibility of volatile cash flow at times, but we expect the company to remain aligned with our rating drivers over an extended period.
We could raise the rating to reflect lower financial leverage, with NCR-adjusted FFO/net debt above 20%; and significantly improved customer diversity and their increased commercial viability. We could also raise the rating from introduction of operational and financial guarantees from the government.
We could lower the rating to reflect inability to commercialise spaceport operations or loss of customers, or from the loss of policy role due to increased commercialisation. The rating could also be lowered from a change in ownership composition or reduced implied ownership commitment.
Related publications
i) Nordic corporates well prepared for improving demand in 2026, 14 Jan. 2026.
ii) Kongsberg Gruppen ASA 'A-' long-term issuer rating placed on watch developing, 31 Oct. 2025.
| Rating list | Rating |
|---|---|
| Long-term issuer credit rating: | BBB- |
| Outlook: | Stable |
| Short-term issuer credit rating: | N3 |
| Senior unsecured issue rating: | BBB- |
Contacts:
Gustav Nilsson, analyst, +46735420446, gustav.nilsson@nordiccreditrating.com
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com
Elisabeth Adebäck, analyst, +46700442775, elisabeth.adeback@nordiccreditrating.com
The methodology documents used for this rating are NCR's Corporate Rating Methodology published on 8 May 2023, NCR's Rating Principles published on 14 Feb. 2024 and NCR's Group and Government Support Rating Methodology published on 14 Feb. 2024. For the full regulatory disclaimer please see the rating report.