Distribution monopolies and very strong market position in electricity and gas supply; Flexible and low-cost generation portfolio; and Robust and improving financial profile. Small-size utility by Austrian and European comparison; and Operates in a 100% liberalized gas and electricity market. The ratings on Austria-based utility KELAG AG reflect KELAG's low business risk, owing to its strong position in electricity supply and its monopoly on regional electricity distribution in the Austrian State of Carinthia (Carinthia; AA/Stable/A-1+). KELAG also has advantageous pumped-storage hydro-generation assets and a robust and further improving financial profile. These strengths are offset by KELAG's small size, its operation in a fully liberalized energy market, and further regulatory pressure from the recently announced new incentive-based regime for setting network
