Naftogaz says Fitch affirms its rating at 'CC'

MOSCOW. Dec 18 (Interfax) - The international rating agency Fitch Ratings has affirmed Naftogaz of Ukraine's credit rating at 'CC', "a level higher than Ukraine's sovereign rating ('RD')", Ukrainian media said quoting Naftogaz's statement.

"According to the agency, Naftogaz has moderate ties to the state, enabling the company to be assessed on a standalone basis," the statement said.

Fitch has also affirmed the rating of Naftogaz's Eurobonds issued through Kondor Finance PLC at 'C', with the Recovery Rating maintained at 'RR6', owing to the company's full and timely payments on the Eurobonds restructured in 2023, it said.

"One of the key factors influencing the company's position, according to Fitch, is the preservation of infrastructure, stable production growth, and improvements in the company's financial performance, particularly in cash flow from operations," Naftogaz said.

On the other hand, the agency acknowledged that Naftogaz's rating is significantly affected by high operational risks amid the crisis, the imminent termination of gas transit, non-payment for gas sales, and restricted access to external financing, it said.