The rating is heavily influenced by high operational risks against the backdrop of the war in Russia and the cessation of transit.
International rating agency Fitch has confirmed the credit rating of Ukraine’s NJSC Naftogaz at the SS level. This level means a high probability of default. The company’s press service reported this on Wednesday, December 18.
“This rating is higher than the sovereign rating of Ukraine (RD) According to the agency, Naftogaz has moderate relations with the state, which allows the company to be assessed on an autonomous basis,” the message said.
Fitch also affirmed the rating of the Neftegaz Eurobonds issued by Kondor Finance plc at C. The Recovery Rating was maintained at RR6 as the company continues to make timely and full repayments on the Eurobonds due in 2023.
Fitch calls one of the main factors that influenced the company’s position the maintenance of infrastructure and stable production growth, as well as the improvement in the company’s financial performance, in particular cash flow from operating activities .
At the same time, the agency clarified that the rating is significantly affected by high operational risks against the backdrop of the war in Russia, the stoppage of transit, non-made payments for sold gas and limited access to external financing.
In addition, Fitch noted the absence since the beginning of the war of any compensation from the state for Naftogaz’s fulfillment of special obligations assigned to it.
We remind you that the Naftogaz supervisory board has appointed an acting head of the company. He became a member of the board of NAC Roman Chumak.
The Rada appointed the former head of Naftogaz, Alexey Chernyshev, to the post of Deputy Prime Minister of Ukraine – Minister of National Unity of Ukraine.
Source: korrespondent
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