Nordic Credit Rating (NCR) said today that it had assigned a 'A-' long-term issuer credit rating to
Rationale
The rating reflects
The company's maritime segment sells green technology to non-green industries (oil and shipping), which we see as neutral in the context of its environmental, social, and governance performance. However, we lower our stand-alone credit assessment by one notch due to reduced availability of funding from investors adverse to defence industry activity. Conversely, we add back a notch to reflect the likelihood that the majority owner, the Norwegian government, would support the company if needed. In sum, the adjustment factors affecting the rating are neutral.
Stable outlook
The stable outlook reflects our expectation that negative effects from the COVID-19 pandemic will diminish during 2021, leading to improved market conditions for the maritime segment. We also expect that spending on defence will remain at high levels and that demand for
Rating list | Rating |
Long-term issuer credit rating: | A- |
Outlook: | Stable |
Short-term issuer credit rating: | N-1+ |
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The methodology documents used for this rating are NCR's Corporate Methodology published on
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