Moody's rates Eesti Energia notes A1

Moody's Investors Service said it assigned a provisional A1 rating to Estonia-based Eesti Energia AS's proposed fixed-rated notes due 2020 in the amount of at least €200 million.

Eesti Energia will launch an exchange offer of its existing €200 million 6% notes due 2009 for the new notes due 2020 in order to lengthen Eesti Energia's debt maturity profile and take advantage of current market conditions, the agency said.

Moody's said the rating reflects the A1 rating of Estonia, the medium level of default dependence, the high level of support from the Estonian government and Eesti Energia's position as the dominant vertically integrated utility in Estonia enjoying a protected market position.

However, the agency noted that the company operates in an untested regulatory regime.

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