Fitch Ratings Upgrades Gazprom, Gazprom Neft To 'BBB' With Stable Outlook

Credit rating agency Fitch Ratings on Thursday said that it has upgraded the long-term foreign currency issuer default rating (IDR) of the Russian gas company PJSC Gazprom and its subsidiary PJSC Gazprom Neft from "BBB-" to "BBB" with stable outlook

WASHINGTON (UrduPoint News / Sputnik - 15th August, 2019) Credit rating agency Fitch Ratings on Thursday said that it has upgraded the long-term foreign currency issuer default rating (IDR) of the Russian gas company PJSC Gazprom and its subsidiary PJSC Gazprom Neft from "BBB-" to "BBB" with stable outlook.

"Fitch Ratings has upgraded PJSC Gazprom's and subsidiary PJSC Gazprom Neft's (GPN) Long-Term Foreign Currency Issuer Default Ratings (IDR) to 'BBB' from 'BBB-' following a similar rating action on the Russian sovereign," the release said. "The outlooks on the long-term IDRs are stable."

Fitch also upgraded the short-term foreign-currency IDRs of both entities from "F3" to "F2.

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The rating agency said Gazprom's IDR is constrained by that of Russia, the company's controlling shareholding. Fitch on Friday upgraded Russia's rating to BBB with stable outlook.

Fitch said it assess Gazprom's standalone credit profile at "A-," given the company's strong operation and financial profiles as well as country-specific and corporate governance risks.

The rating is aligned with that of its parent company due to the strong linkages between the two entities, the release said.

Fitch said it believes Gazprom will remain the largest gas supplier to Europe and has the capacity to defend its market share given low production costs.