Fitch affirms Naftogaz’s credit ratings at ‘CC’

The credit rating agency, Fitch Ratings, has affirmed National Joint Stock Company Naftogaz of Ukraine's (Naftogaz) Long-Term Issuer Default Rating (IDR) at ‘CC’.

The relevant statement was made by Naftogaz Group’s press service, an Ukrinform correspondent reports.

“The credit rating agency, Fitch Ratings, has affirmed the credit ratings of Naftogaz of Ukraine NJSC at ‘CC’. This result is higher than Ukraine’s sovereign ratings (‘RD’). According to the agency, Naftogaz has moderate linkage with the state, which allows for the company to be rated on a standalone basis,” the report states.

Additionally, Fitch Ratings affirmed Naftogaz’s senior unsecured notes issued by Kondor Finance plc at ‘C’. The Recovery Rating remains at ‘RR6’, as the company continues to make payments for the Eurobond restructured in 2023, on a timely basis and in full.

As noted by Fitch Ratings, Naftogaz’s ratings are significantly affected by very high operational risks amid the ongoing war with Russia, slow payments for gas, and limited external funding options.

The agency also mentioned that, since the full-scale war started, Naftogaz had received no compensation from the state for operating under the public service obligations (PSO) regime. The company’s management continues working with the state to get a PSO compensation and refund the difference in tariff rates during 2024.

A reminder that, on December 6, 2024, Fitch Ratings affirmed Ukraine’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘Restricted Default’ (RD).