The rating affirmation reflects Scope's expectation that, in the absence of significant capex needs and positive free cash flow, a normalisation of power prices will allow TrønderEnergi to deleverage to around 3x.

Following the recent rating action on TrønderEnergi AS, Scope has released an associated analytical report.

The upgrade reflects Scope’s expectation that TrønderEnergi will continue to have high profitability, supporting an improved financial leverage.

The raised Outlook reflects the prospects of improved profitability and thereby better key credit metrics due to increased profitability in generation, as hedges made at low prices roll out of the hedge portfolio and hedge ratios decrease.

The issuer rating reflects TrønderEnergi's standalone credit quality of BBB- and a one-notch uplift from parent support. The uplift is driven by the assumed capacity and willingness of TE’s Norwegian municipality owners to provide support if needed