The downgrade reflects a weaking financial risk profile due to increased leverage and a difficult business environment in France.

The updated corporate strategy and financial policy are in line with the current rating levels.

The affirmation reflects Eidsiva’s continued competitive strength as Norway’s largest distribution grid operator, its low industry risk, and projected substantial capex and dividend payouts.

The upgrade is based on its improved financial risk profile amidst tough economic conditions and the well-integrated acquisition of Eltex Kft., although the limited size is still a rating constraint.

The ratings are driven primarily by the company’s low leverage and profitability and are somewhat constrained by its small size, low diversification and expansion-related execution risk.

The upgrade follows the removal of under review for a developing outcome after the delayed publication of B+N’s 2021 financial statements and reflects the group’s strong financial risk profile and attained stable project backlog.

The affirmation is driven by an improving order book and a solid financial risk profile, despite operating margins coming under pressure from project delays in a more challenging business environment.

Good competitive positioning in the Nordics, business diversification and still strong financial metrics offset rising inflation pressures and indebtedness.

Monitoring review announcement

The upgrade reflects improved competitive positioning with the acquisition of Vodafone Hungary, and slightly improved credit metrics. The rating is still constrained by execution and integration risks due to numerous acquisitions in the telecoms industry