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S&P lowers Solveig Gas Norway's rating

By BFN News | 03:22 PM | Thursday 02 May, 2013

Standard & Poor's has lowered Solveig Gas Norway's rating by one notch to BBB+. S&P's research report states: "The consultation process with respect to a proposal to substantially reduce transport tariffs on the majority of future capacity bookings for the Gassled network undertaken by the Norwegian Ministry of Petroleum & Energy (MPE) closed as planned on March 15, 2013. "The MPE has since delayed implementation of any tariff change to July 1, 2013 from May 1, 2013, without issuing further guidance. We consider that there is still considerable uncertainty about the likely process or outcome of the proposal, and that this demonstrates a less stable, transparent, and predictable regulatory approach than previously expected. "We are therefore lowering our long-term issue ratings on the bonds issued by Norway-based asset company Solveig Gas Norway AS to 'BBB+' from 'A-' and keeping the ratings on CreditWatch negative, where they were placed on Jan. 21, 2013. "The continuing CreditWatch placement reflects our view of the potential impact on the project's financial profile of the proposed reduction in tariffs by the MPE." Story provided by

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