5.1 Capital management
Equity and liabilities as shown in the balance sheet are managed by the company as capital. The principal aim of Fingrid’s capital management is to ensure that the company is capable of uninterrupted operations and can rapidly recover from any exceptional circumstances. Additional key goals include maintaining an optimal capital structure such that the company’s credit rating remains solid, cost of capital remains reasonable, and the company can pay dividends to its shareholders.
The company has not set specific financial ratio targets for capital management, but instead monitors and controls the overall capital structure based on credit ratings and their underlying parameters.
The company’s credit rating remained high in 2016. This reflects the company’s strong overall financial situation and debt service capacity. Fingrid has credit rating service agreements with S&P Global (S&P) and Fitch Ratings (Fitch).
- 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.
The company aims to maintain a credit rating of at least ‘A-’. The credit rating target and criteria guide financing activities.