Fitch Ratings has revised the Outlook on NJSC Naftogaz of Ukraine to Positive from Stable and affirmed the IDR at 'B'.
Fitch equalises Naftogaz's ratings with those of Ukraine's sovereign rating (B/Positive), reflecting the company's strong links with the sovereign.
Among the key rating drivers Fitch assumes strategic importance of Naftogaz as Ukraine's largest natural gas production, wholesale and supply company.
At the same time, Fitch notes significant changes in the natural gas market in Ukraine, in particular, the abolition of the public service obligations (PSO) regime. Until May 2021, Naftogaz was obliged to supply gas under the PSO regime, which negatively affected the collectability of receivables.
Liquidity strain from high capex in the upstream segment are increasingly important for the company’s financial profile in the future.
Integrated Communications Department
Naftogaz of Ukraine NJSC