Fitch Ratings has affirmed NJSC Naftogaz of Ukraine's (Naftogaz) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'B-' with stable outlooks.
"The affirmation reflects Naftogaz's strong links with its sole shareholder Ukraine (B-/Stable) under Fitch's Government-Related Entities (GRE) rating criteria and our assessment of the company's standalone credit profile (SCP) at 'B-', which is at the same level as the sovereign's IDR," Fitch Ratings said in a press release.
"The rating also takes into account Naftogaz's weak liquidity profile but overall relatively low leverage and also some uncertainty related to domestic gas prices, the unbundling of the international transit business and political risk," reads the report.
UNIAN memo. NJSC Naftogaz of Ukraine is the largest state-run vertically integrated oil and gas holding whose subsidiaries account for about 90% of oil and gas production in Ukraine. Naftogaz develops oil and gas fields, produces crude oil and natural gas. Its core business is also transportation and trade in fuel through its own network of filling stations.