Fitch Upgrades RE’s Credit Rating
• Solid operations
• Strong liquidity and cash flow
• Foreign exchange exposure limited
Yesterday, the international rating company Fitch Ratings upgraded RE’s Long Term Issuer Default Rating (IDR) to BBB- from BB+. This means that Fitch now rates RE as investment grade. Outlook is stable. The upgrade is primarily based on Fitch’s expectations of RE’s improvement in credit metrics over the next four years. The expectations reflect RE’s stellar performance in 2020, in the midst of the global pandemic. Furthermore, the credit rating reflects solid operations and performance in recent years.
Affirmation of financial health
“This is delightful and long awaited, as this was one of the objective of The Plan, which was activated 10 years ago, on April 1. Furthermore, it is especially delightful to achieve this grade in the middle of the COVID-19 pandemic, while credit ratings of companies in the same category remain unchanged or are lowered. It is also noteworthy that RE’s credit rating is upgraded while the Icelandic economy has faced great difficulties. In our view this confirms the consolidation’s financial health and will reinforce us in credit markets, especially internationally,” says RE’s CFO, Ingvar Stefánsson.
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