The international rating agency Fitch has confirmed the credit rating of Naftogaz of Ukraine at "CC" level.
This was reported by the company’s press service.
This rating signifies a high likelihood of default.
"This rating is higher than Ukraine's sovereign rating ('RD'). According to the agency’s assessment, Naftogaz has moderate ties with the state, allowing it to be evaluated on an autonomous basis," the statement said.
Fitch also confirmed the rating of Naftogaz’s eurobonds issued by Kondor Finance plc at "C." The Recovery Rating was maintained at "RR6," as the company continues to make timely and full payments on the eurobonds, which were restructured in 2023.
"One of the key factors influencing the company’s position, according to Fitch, is the preservation of infrastructure, stability in production growth, and the improvement of the company's financial performance, particularly cash flow from operations," Naftogaz explained.
However, the agency noted that the rating is significantly impacted by high operational risks due to the war with Russia, the cessation of gas transit, non-payment for gas sales, and limited access to external financing.
Additionally, Fitch highlighted the absence of any compensation from the state since the start of the war for the special obligations (PSZ) Naftogaz has fulfilled. The company continues to negotiate with the state to receive compensation for PSZ and tariff differences in 2024.
