Orkuveita Reykjavíkur - Other information disclosed according to the rules of the Exchange

Fitch Upgrades Orkuveita Reykjavíkur to ‘BB’; Outlook Stable

Reykjavík, 2017-02-10 18:11 CET (GLOBE NEWSWIRE) -- Fitch Ratings has upgraded
Orkuveita Reykjavíkur's (OR; Reykjavik Energy) Long-term Issuer Default Rating
to ‘BB’ from 'BB-'. The Outlook is Stable. 

According to Fitch‘s attached release, the upgrade reflects the company's
progress on debt reduction aided by improved macroeconomic conditions in
Iceland and the significant appreciation of the Icelandic Krona, the company’s
proven track record in outperforming targets on the 2011-2016 business plan and
expected continued shareholder support including parent guarantees on debt. 

The Stable Outlook takes into account the steady regulatory environment and the
company’s remaining high exposure to market risks and its high financial
leverage. 

Ingvar Stefánsson, CFO:

It is encouraging to see this recognition of things going well. Our operations
are solid so favourable externalities are reflected in improved finances. Our
reduction of tariffs for some of the utility services, at the beginning of the
year, revealed how our customers benefit from improved performance by OR and
its subsidiaries. 


         Contact:
         Ingvar Stefánsson
         CFO
         +354 516 6100

Attachments:

Fitch Ratings Credit Update - OR Feb 2017.pdf