The rating action reflects higher-than-expected investments in 2024 and more moderate power prices, which are exerting downward pressure on the financial risk profile amid Haugaland Kraft's further growth ambitions.

The upgrade follows significant improvements in Haugaland Kraft’s financials. The Stable Outlook reflects Scope’s view that high investments and continued dividends will necessitate new debt and normalise leverage after ending 2022 in a net cash position.

Higher power prices have enabled significant deleveraging while the impending increase in tax payments will be manageable.

A utility company with segment diversification and ambition to grow.