The rating affirmation reflects Tensio’s monopoly position as a large, profitable grid distributor in central Norway and the expectation of leverage remaining moderate despite high investment needs causing negative free operating cash flow.

The affirmation reflects Tensio’s low business risks as a pure-play electricity distribution system operator. Credit metrics are expected to be sustained at moderate levels despite continued high capex.

The affirmation reflects the company’s strong market position as one of Norway’s largest regulated grid operators, good profitability and moderate leverage. High investment needs and projected negative free operating cash flow are constraints.

Stable operating performance achieved, and on course to meet targeted leverage multiple of 5x by year end.

The affirmation reflects the company’s positive operational development and continued delivery of its financial policy plans.

The first-time rating reflects the Norwegian energy utility’s strong business risk profile but is constrained by the prospect of a weaker financial risk profile once financial targets are implemented.