The affirmation reflects the maintenance of low business risks and Scope’s expectation that Eidsiva will contain financial risks amid high capex needs, albeit with limited headroom for underperformance.

The affirmation reflects unchanged business and financial risk profiles. Financial headroom to the downside scenario is shrinking, however.

The upgrade is driven by the improved financial risk profile enabled by a stronger-than-expected performance, continued robust cash flows from its grid operation and cash dividends from Hafslund ECO Vannkraft.

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 affirmation reflects the company’s continued competitive strength as Norway’s largest distribution grid operator, its low industry risk, and Scope’s projections of continued substantial capex and dividend payouts.

Business risks are low and stable, but the high capex and dividends will result in a sizeable increase in debt in the next few years.

The affirmation is driven by the ongoing successful integration after the transaction with Hafslund E-CO, with final financial figures being largely in line with Scope's expectations.

Both the City of Oslo and Eidsiva owners have now granted final approval to merge Eidsiva and Hafslund E-CO’s grid and power production units at their general meetings on 25 and 27 June, respectively. The transaction has also been cleared by authorities.

The upgrade follows the agreement between the boards of Eidsiva and Hafslund E-CO, announced on 14 March 2019, to merge in accordance with the letter of intent from 20 November 2018. The ratings were previously under review for possible upgrade.

The placing under review for possible upgrade follows the 15 November letter of intent between Eidsiva and Hafslund E-CO to merge their main activities, which will improve Eidsiva's business risk profile, and should improve the issuer rating as well.