Naftogaz’s Fitch Rating Improved
Naftogaz's outlook is positive
Fitch Ratings has upgraded National Joint Stock Company Naftogaz’s long-term foreign-currency issuer default rating (IDR) to ‘B’ from ‘B-‘. The outlook is positive.
“The upgrade follows that of Ukraine’s sovereign rating (B/Positive) on 6 September 2019 and the application of Fitch’s Government-Related Entities (GRE) Rating Criteria. Fitch equalizes Naftogaz’s ratings with those of sovereign, reflecting the company’s strong links with the sovereign and our assessment of the company’s standalone credit profile (SCP) at ‘b-‘,” reads the statement posted on the website of Fitch Ratings.
The rating also takes into account Naftogaz’s weak liquidity profile but overall low leverage and also some uncertainty related to domestic gas prices, the unbundling of the international transit business and political risk.