Nordic Credit Rating (NCR) has affirmed its 'BBB-' long-term issuer rating on Norway-based Austevoll Seafood ASA. The outlook is stable. The 'N3' short-term issuer rating and 'BBB-' senior unsecured issue rating have also been affirmed.
Rating rationale
The affirmation reflects Austevoll Seafood's strong linkage to Lerøy Seafood Group ASA through a 52.7% ownership stake. Lerøy Seafood has a strong market position in the profitable salmon farming industry and has diversified into wildcatch fishing. Austevoll Seafood's creditworthiness is supported by the breadth of the operations of its holdings in pelagic fishery companies which are fully integrated seafood producers with significant processing and distribution capabilities.
We have revised our assessment of ratio analysis due to increased financial leverage in recent years and lower expected EBITDA margins for 2026–2028, mainly reflecting lower anticipated Atlantic salmon prices. However, we continue to expect higher EBITDA margins during this period compared to the past few years, primarily supported by stronger salmon and fishmeal prices.
The rating is constrained by the seafood sector's historical earnings volatility due to unstable prices as a result of variable supply and the fact that salmon farmers are effectively price takers, particularly in recurring periods of oversupply. It is also constrained by environmental and disease related challenges, with the industry particularly impacted by high costs for treating sea lice and winter wounds. We lower the issuer rating by one notch from our indicative credit assessment to reflect the fact that Austevoll Seafood, as a holding company, obtains its cash flows almost exclusively from group contributions and dividends from subsidiaries and joint ventures.
Stable outlook
The outlook is stable, reflecting our view that growing demand for seafood and moderate salmon supply growth will support global prices over the next three years. We anticipate global salmon prices and demand for fishmeal and fish oil to improve in 2026 and remain strong over our forecast period through 2028. We consider a potential El Niño (increased sea surface temperature) to be a short-term risk for the pelagic fishery in the Pacific, but do not anticipate long-term adverse effects.
We could raise the rating to reflect reduced financial leverage leading to NCR-adjusted FFO/net debt above 60% over a protracted period, substantially improved operating efficiency, and lower financial leverage at JVs. We could lower the rating to reflect reduced dividends from subsidiaries for a protracted period, increased financial leverage leading to FFO/net debt below 40% over a protracted period, or loss of control of Lerøy Seafood.
Relevant research
- Structural constraints driving salmon prices, 10 Mar. 2026.
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | BBB- | BBB- |
| Outlook: | Stable | Stable |
| Short-term issuer credit rating: | N3 | N3 |
| Senior unsecured issue rating: | BBB- | BBB- |
Contacts:
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com
Christian Yssen, analyst, +4740019900, christian.yssen@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.