Distribution monopolies and very strong market position in electricity and gas supply Flexible and low-cost generation portfolio Modest financial risk profile Moderate exposure to regulatory pressure Low customer churn rates at the retail level Announced large-scale investment plan could put pressure on financial profile Small utility by Austrian and European comparison Operates in a 100% liberalized gas and electricity market Exposure to volatile hydro level The ratings on Austria-based utility KELAG AG reflect the company's sound business profile, owing to its strong local position in electricity supply and its natural monopoly on regional electricity distribution in the Austrian State of Carinthia. These strengths are offset by its small size, its operation in a fully liberalized energy market, and regulatory pressure
