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Birka Energi AB Ratings on Watch Neg After News of 100% Acquisition by Fortum Nov 01
Standard & Poors, Nov 2001
Abstract
STOCKHOLM (Standard & Poor's) Nov. 6, 2001--Standard & Poor's today placed its triple-'B'-plus long-term and its 'A-2' short-term ratings on Swedish utility company Birka Energi AB (Birka) on CreditWatch with negative implications. This action follows today's announcement that Fortum Oyj (not rated) of Finland has agreed to acquire the 50% stake in Birka currently held by the City of Stockholm (AA+/Stable/A-1+), increasing its ownership of Birka to 100%. The transaction is conditional on approval by the City of Stockholm and the EU commission. Consolidation into the Fortum group could potentially weaken Birka's credit quality. Standard & Poor's expects to resolve the CreditWatch status within the next few months based on further analysis of the new Fortum group--including future strategic and...
Companies mentioned in this report are: Fortum Power & Heat AB,Stockholm (City of),Vattenfall AB
Action: On CreditWatch:Negative
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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