Very strong position in the power supply market in the Austrian State of Carinthia. Low marginal cost hydropower generation portfolio. Significant contribution from low-risk regulated activities. Modest financial risk profile. Exposure to wholesale price fluctuations from unregulated generation and supply operations. Sensitivity to hydrological conditions in power generation that adds to cash flow volatility. Current capital expenditure program set to weaken key credit metrics over the medium term. The rating on Austria-based utility company KELAG incorporates Standard&Poor's Ratings Services' view of the company's strength in regional electricity and heating supply and distribution in the Austrian State of Carinthia, as well as its strong generation asset base and conservative use of financial leverage. We view KELAG's business risk profile
