| Norway, home to the world’s biggest sovereign wealth fund, is betting it can afford to ignore investor outrage. After shocking global credit markets in 2011 by pulling support from the once AAA and now junk (6120B)-rated lender Eksportfinans ASA, the government unveiled plans in January to cut tariffs on gas transport by 90 percent, sapping income for those funding the venture by as much as $7 billion.
Investors are now asking themselves how much risk they’re willing to accept to gain access to western Europe’s biggest oil and gas reserves. And while Norway boasts a stable AAA rating and the world’s smallest default risk, the government’s decision to ride roughshod over investors is starting to resemble actions seen in less stable democracies such as Venezuela and Russia...............................................Full Article: Source
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