Orkuveita Reykjavíkur - Company Announcement

Reitun upgrades OR‘s credit rating

Reykjavik, 2016-03-22 10:37 CET (GLOBE NEWSWIRE) -- The Icelandic rating
company Reitun has upgraded Orkuveita Reykjavíkur‘s (OR; Reykjavik Energy)
credit rating from i.A1 to i.AA3 with stable outlook. The attached rating
release (only available in Icelandic) states: “Orkuveita Reykjavikur is
returning as one of Iceland’s largest and most solid companies.” It further
states that actions taken by the Company’s board of directors and management
have succeeded beyond targets. Important milestones have already been reached,
Reitun states, and all conditions equal, OR should reach its goals of low
leverage, stronger cash position, decreased market risk, and solid returns from
operations. 

In its rating action, Reitun says that in year 2015, OR reached the important
of the Plan having returned its target for improved cash position, one year and
a half ahead of time, and the Company’s updated budget involve continued
restraint in expenditures. In Reitun’s opinion, the success already achieved
and the solid cooperation between the Board and the management, the budget is
realistic and a good step forward. Reitun also point out that despite OR’s
accomplishments, the Company has not yet achieved the financial strength its
aims at. 


         Contact:
         Ingvar Stefansson
         CFO
         +354 516 6100

Attachments:

Reitun Lanshfismat OR - mars 2016.pdf