The rating action reflects the progressing but uncertain outcome of merger talks with Glitre Energi.

The Outlook change is driven by the increased risk of financial risk profile pressure for a longer period due to low power prices prevailing in Norway.

The affirmation is driven by the utility's high hydropower production in 2018 as well as the effect on group metrics by the continued high investment and lower power production expected by Scope in the short to medium term.

The affirmation is driven by a still-solid business risk profile that benefits from a vertically integrated business model, coupled with a financial risk profile showing relatively stable indebtedness.

Scope Ratings today assigns a first-time corporate issuer rating of BBB+ to Norway-based Agder Energi AS. The Outlook for the rating is Stable. Scope also assigns an S-2 short-term rating. The company’s senior unsecured debt is rated BBB+.