Standard & Poor's has downgraded TVO's long term credit rating to BB
Due to Covid-19 related delay in Olkiluoto 3 (OL3) fuel loading Standard & Poor's (S&P) has today downgraded Teollisuuden Voima Oyj's (TVO) long term credit rating from BB+ to BB; outlook negative.
According to S&P the timing and effect on OL3 commissioning is unclear and they expect that this will further increase project costs and postpone TVO's deleveraging, increasing the risk that the Areva (not rated) is unable to maintain sufficient funds for related obligations, including the two-year guarantee period.
The negative outlook reflects the risk that TVO's financial flexibility could diminish as a result of weaker counterparties or additional delays that could further increase already-high financial leverage.
For further information, please contact:
Lauri Piekkari, Senior Vice President, Treasury, Tel. +358 50 357 8623.
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