On 28 Nov. 2024, Fredrikstad municipality finalised the sale of its 51% stake in Fredrikstad Energi to Å Energi, making Fredrikstad Energi a majority-owned subsidiary of Å Energi. Hafslund AS, which is wholly owned by Oslo municipality, owns the remaining 49% stake.
We placed Fredrikstad Energi's long-term issuer rating and senior unsecured issue ratings on watch negative on 4 Nov. 2024 due to uncertainty about the company's future standalone credit profile, its integration into the Å Energi group and the acquisition's impact on the credit risk profile of the combined group.
We remain uncertain about the transaction's impact on the credit quality of Fredrikstad Energi due to limited information about the integration of Fredrikstad Energi into the combined group. We aim to resolve the watch status in the near-term once we have evaluated the structure, integration plans and likelihood of group support for Fredrikstad Energi.
Related publications
i) Fredrikstad Energi AS 'BBB+' long-term issuer rating placed on watch negative, 5 Nov. 2024.
This commentary does not constitute a rating action.
Contacts:
Gustav Nilsson, analyst, +46735420446, gustav.nilsson@nordiccreditrating.com
Geir Kristiansen, analyst, +4790784593, geir.kristiansen@nordiccreditrating.com