The company Standards and Poors, which evaluates company’s credit rating, has lowered Landsvirkjun (Iceland’s national energy company) down to a category usually known as “the Trash”, due to Landsvirkjun’s constantly worsening financial situation. This means e.g. that the company will face serious problems when trying to get loans for new and upcoming projects. In announcement from Landsvirkjun, Stefán Pétursson, the company’s financial director, says that the lowered position will not have any impacts on the company’s already existing loans.
This is for the first time when Landsvirkjun’s credit rate is lower then the Icelandic state’s rate. According to Bloomberg, Landsvirkjun has to pay 250 million dollars (32 billion ISK) this year and the next one, as payments of loans and bonds, as well as paying interests.
The 19th of June this year, Landsvirkjun and the Icelandic state signed a contract, which states that if Landsvirkjun is in a lack of finance to pay their costs because of loans, the Central Bank will give the company money in exchange of Icelandic Krónur or bonds. The contract is valid for two years and with it, Landsvirkjun has access to 300 million dollars.