Nordic Credit Rating (NCR) views the overall credit outlook for the Nordic utility sector as stable. Long-term structural demand for power, a focus on renewable energy and sustainability, improved credit metrics and strong ownership are common factors among the region's utilities. However, the sector remains fragmented in terms of operational focus and financial performance both within and across the Nordic countries.
"We believe that the high share of renewable generation capacity, strong local market positions, as well as typically municipal ownership, support the overall credit quality of Nordic utilities," says Michael Andersson, Chief Rating Officer at Nordic Credit Rating.
Overall, NCR sees a majority of issuers' credit profiles in investment grade territory (bbb- and above). Limited size and diversification, as well as somewhat weaker credit metrics in comparison with other sectors, are typically offset by strong local and regional market positions (including local monopolies), as well as a relatively high likelihood of support from owners, the report says.
You can download the full research report on https://nordiccreditrating.com/ratings-research/research.
If you have any questions, please contact:
Michael Andersson, Chief Rating Officer, + 46 73 232 43 22, firstname.lastname@example.org