Financing

1.1.5 Financing

The company’s credit rating remained high, reflecting the company’s strong overall financial situation and debt service capacity. The company’s net financial costs during the period under review were EUR 18.7 (33.7) million, including the change in the fair value of derivatives of EUR -0.3 million (EUR -13.3 million).

Interest-bearing borrowings totalled EUR 1,107.7 (1,143.4) million, of which non-current borrowings accounted for EUR 842.9 (907.2) million and current borrowings for EUR 264.9 (236.2) million. In 2016, the company issued bonds totalling EUR 80 million (EUR 50 million with a four-year maturity and EUR 30 million with a six-year maturity) to refinance current borrowings.

The company’s liquidity remained good.  Cash and financial assets recognised at fair value through profit or loss on 31 December 2016 totalled EUR 79.7 (116.6) million. The company additionally has an undrawn revolving credit facility of EUR 300 million to secure liquidity and EUR 50 million in uncommitted overdraft facilities. Fingrid used the first extension option of the revolving credit facility during the period under review. This extended the maturity of the revolving credit facility until 11 December 2021.

The counterparty risk arising from derivative contracts relating to financing was EUR 16 (11) million. Fingrid’s foreign exchange and commodity price risks were generally fully hedged.

The international credit rating agencies S&P Global (S&P) and Fitch Ratings (Fitch) upgraded Fingrid’s ratings as follows:

  • On 28 October 2016, S&P raised the rating for Fingrid Oyj’s unsecured senior debt and long-term company rating to ‘AA-’ and the short-term company rating to ‘A-1+’, with a stable outlook.
  • On 21 November 2016, Fitch raised the rating for Fingrid Oyj’s unsecured senior debt to ‘AA-’, the long-term company rating to ‘A+’, and affirmed ‘F1’ for the short-term company rating, with a stable outlook. The rating received by Fingrid was, at the time of issuing, the highest valid rating given by Fitch to any European regulated TSO.