Fitch Ratings has affirmed the BBB- Long-Term Issuer Default Rating (IDR) with a negative outlook for the Romania-based Romgaz (BVB: SNG) – including a one-notch uplift from its bb+ Standalone Credit Profile (SCP) for state support, under our Government-Related Entities Rating Criteria.
The SCP reflects Romgaz's dominant position in Romania's natural gas market, upstream production growth potential from Neptun Deep and Caragele developments, and a conservative financial policy.
Key rating constraints include its modest production scale, lack of geographic diversification, aging legacy gas assets, and large capex.
The company's rating is constrained by the sovereign rating.
Material improvement of the business profile (through diversification or a much larger scale through material upstream production increase), alongside a still conservative financial profile, may be positive for the SCP, but not necessarily the IDR.
iulian@romania-insider.com
(Photo source: Inquam Photos/Adel Al-Haddad)
Fitch Ratings has affirmed the BBB- Long-Term Issuer Default Rating (IDR) with a negative outlook for the Romania-based Romgaz (BVB: SNG) – including a one-notch uplift from its bb+ Standalone Credit Profile (SCP) for state support, under our Government-Related Entities Rating Criteria.
The SCP reflects Romgaz's dominant position in Romania's natural gas market, upstream production growth potential from Neptun Deep and Caragele developments, and a conservative financial policy.
Key rating constraints include its modest production scale, lack of geographic diversification, aging legacy gas assets, and large capex.
The company's rating is constrained by the sovereign rating.
Material improvement of the business profile (through diversification or a much larger scale through material upstream production increase), alongside a still conservative financial profile, may be positive for the SCP, but not necessarily the IDR.
iulian@romania-insider.com
(Photo source: Inquam Photos/Adel Al-Haddad)
Fitch Ratings has affirmed the BBB- Long-Term Issuer Default Rating (IDR) with a negative outlook for the Romania-based Romgaz (BVB: SNG) – including a one-notch uplift from its bb+ Standalone Credit Profile (SCP) for state support, under our Government-Related Entities Rating Criteria.
The SCP reflects Romgaz's dominant position in Romania's natural gas market, upstream production growth potential from Neptun Deep and Caragele developments, and a conservative financial policy.
Key rating constraints include its modest production scale, lack of geographic diversification, aging legacy gas assets, and large capex.
The company's rating is constrained by the sovereign rating.
Material improvement of the business profile (through diversification or a much larger scale through material upstream production increase), alongside a still conservative financial profile, may be positive for the SCP, but not necessarily the IDR.
iulian@romania-insider.com
(Photo source: Inquam Photos/Adel Al-Haddad)
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