Statoil downgrade by Moody’s hits Norwegian funds

Statoil, the  biggest listed Norwegian company by market capitalisation on the Oslo exchange, has seen its share price fall after Moody’s joined Standard & Poor’s and downgraded the company’s senior unsecured debt.

The rating for senior unsecured debt has dropped to Aa3 from Aa2, reports local business daily Dagens Næringsliv. The downgrade follows a previous drop to Aa- from A+ at rival ratings agency Standard & Poor’s.

As of 01.19 CET on 21 March, Statoil shares were down about 1.7% at about NOK133. The share price had rallied over the previous two months, as the share price dipped below NOK100 on 20 January.

The company is a staple for many Norwegian funds. For example, it accounted for some 3.88% of holdings in the Delphi Nordic portfolio from Delphi Funds as of the end of February.

The Delphi Norge fund has over 8% of the portfolio in Statoil shares.

Odin Norge shows a 6.7% exposure, according to FE data.

And Storebrand Norge has 14.65% of the portfolio in Statoil.

An indication of the weighting of Statoil in the Norwegian market comes in the holdings data for the Storebrand Indeks Norge fund; where it accounts for 16.12% of the portfolio, according to Morningstar Norway data.







Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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