1.2 Financing

The company’s credit rating remained high, reflecting its strong overall financial situation and debt service capacity. The Group’s net financial costswere EUR 10.1 (15.2) million, including EUR 0.7 million in interest expenses on the lease liabilities entered into the balance sheet following the introduction of the IFRS 16 standard in 2019. The Group’s net interest expenses on loans during the year totalled EUR 14.7 (16.3) million. The change in the fair value of financial derivatives was EUR 8.1 million positive (EUR 6.7 million positive).

Interest-bearing borrowings totalled EUR 1,120.0 (1,059.6) million, of which non-current borrowings accounted for EUR 884.7 (771.5) million and current borrowings for EUR 235.3 (288.1) million. At the end of the year, the company’s interest-bearing borrowings included a total of EUR 32.9 million in lease liabilities, consisting of EUR 2.4 million in short-term liabilities, to be paid within a year. 

The company’s liquidity remained good. Cash and financial assets totalled EUR 82.8 (85.3) million on 31 December 2019. The company additionally has an undrawn committed revolving credit facility of EUR 300 million to secure liquidity (until 11 December 2022) and EUR 50 million in uncommitted overdraft facilities. 

The counterparty risk arising from derivative contracts relating to financing was EUR 22.4 (14.3) million. Fingrid’s foreign exchange and commodity price risks were hedged.

Fingrid has credit rating service agreements with S&P Global Ratings (S&P) and Fitch Ratings (Fitch). The credit ratings valid on 31 December 2019 remained high and were as follows:

  • S&P’s rating for Fingrid’s unsecured senior debt and long-term company rating at ‘AA-’ and the short-term company rating at ‘A-1+’, with a stable outlook.
  • Fitch’s rating for Fingrid’s unsecured senior debt at ‘A+’, the long-term company rating at ‘A’, and ‘F1’ for the short-term company rating, with a stable outlook.