The international rating agency Fitch has affirmed Naftogaz of Ukraine's credit rating at 'CC', the company's press service reports.
Details
This rating is higher than Ukraine's sovereign rating (RD). According to the agency, Naftogaz has moderate ties to the state, which allows the company to be assessed autonomously.
Fitch also affirmed the rating of Naftogaz's Eurobonds issued by Kondor Finance plc at 'C'. The Recovery Rating was left at 'RR6' as the company continues to make timely and full payments on the Eurobonds restructured in 2023.
Factors
One of the key factors that influenced the company's position, Fitch calls for the preservation of infrastructure and stable production growth, as well as the improvement of the company's financial performance, particularly cash flow from operations.
The agency also points out that the rating is significantly affected by high operational risks such as the war with Russia, the suspension of gas transit, non-payments for gas sold, and limited access to external financing.
In addition, Fitch noted the absence of compensation from the state since the beginning of the war for Naftogaz's fulfillment of its special obligations (PSO). Naftogaz notes that it continues to work with the state to obtain compensation for PSO and the tariff difference in 2024.
