Landsvirkjun - Company Announcement

Landsvirkjun investment grade following Moody’s upgrade

Moody’s Investors Service has upgraded Landsvirkjun‘s credit rating for
unguaranteed debt to Baa3 from Ba1. Credit rating for Landsvirkjun’s debt
supported by a guarantee of collection is upgraded to Baa1 from Baa2. Outlook
is stable. The rating action follows Moody’s upgrade for the Republic of
Iceland from September 1, 2016. Hordur Arnarson, CEO: “Landsvirkjun is now
investment grade for unguaranteed debt with both Moody’s and S&P, which is very
good news. To achieve investment grade increases trust amongst lenders and
supports Landsvirkjun’s operations with improved access to capital and lower
financing cost. Landsvirkjun will continue to focus on reducing leverage and
further improving the operation and financials of the company”.     Reykjavik,
September 5, 2016For further information please contact Rafnar Larusson, CFO
Phone nr. +354 515 9000 or by email: rafnar@lv.is

Attachments:

2016 09 05 Moodys Rating Action Eng.pdf