Page 16 - FSUOGM Week 18 2021

FSUOGM NEWS IN BRIEF FSUOGM

“The good news is that JKX has enough resources is at the level of Russia’s (Baa3 stable) country the power sector.
to pay the bill ($28.4mn in net cash as of end- ceiling for foreign currency debt. The rating The Negative Outlook mirrors that of Georgia
March), so the potential payment won’t dry up reflects the company’s vast conventional low- (BB/Negative), as per Fitch’s Government-Re-
the company’s liquidity. At the same time, the cost gas and oil reserves; high share of processed lated Entities (GRE) Rating Criteria. Fitch rates
need to pay (even in a one- to two-year perspec- value-added products in its product mix; track GOGC by applying a one-notch uplift to Its Stan-
tive) significantly restricts the company’s ability record of strong production growth; strong dalone Credit Profile (SCP) of bb- to arrive at the
to invest into new E&P, which, coupled with high domestic market position in gas; low produc- same rating as Georgia, the ultimate source of
decline rates of hydrocarbon output in Ukraine tion costs, robust credit metrics and liquidity, potential support to the company.
observed over the last quarters, limits its value and conservative financial policy; track record The ratings have been withdrawn for com-
growth potential in the mid-term,” an analyst at of successful project completion; high capital mercial reasons. Fitch will no longer provide
the Kyiv-based Concorde Capital brokerage said spending, along with a pipeline of new liquefied ratings or analytical coverage of GOGC.
in a research note. natural gas (LNG) projects; and significant con- Fitch Ratings, April 26 2021
bne/IntelliNews, April 30 2021 tingent liabilities in the form of guarantees pro-
vided to the Yamal LNG joint venture.
Moody’s Investors Service, April 29 2021 MOVES
FINANCE

Moody’s completes Fitch affirms GOGC Ukraine’s Parliament
appoints new energy
at BB/Negative,
periodic review of ratings withdraws ratings minister
of PAO Novatek Fitch Ratings has affirmed Georgian Oil and Gas Ukraine’s parliament has appointed Herman

Moody’s Investors Service has completed a Corp.’s (GOGC) Long-Term Foreign-Currency Haluschenko to the position of Energy Minister
periodic review of the ratings of PAO Novatek Issuer Default Rating (IDR) at BB with a Nega- on April 29. A supermajority of 305 MPs (out of
and other ratings that are associated with the tive Outlook and simultaneously withdrawn the 226 needed) voted in favour of this appointment,
same analytical unit. The review was conducted ratings. A full list of ratings actions is below. including the pro-president faction, opposition
through a portfolio review discussion held on The affirmation reflects our expectation factions and pro-oligarchic groups and factions.
April 28, 2021, in which Moody’s reassessed the that GOGC will be able to deleverage to within During the last year Haluschenko served in
appropriateness of the ratings in the context of our rating sensitivities from 2022 on improved the position of vice-president of state nuclear
the relevant principal methodology(ies), recent EBITDA from the electricity generation seg- generation company Energoatom. Before that,
developments, and a comparison of the finan- ment, following an expected leverage spike in he occupied various positions in the Foreign
cial and operating profile to similarly rated peers. 2021. The rating is also supported by GOGC’s Ministry, Justice Ministry and presidential
The review did not involve a rating committee. monopoly in oil and gas transportation in Geor- administration.
PAO Novatek’s (Novatek) Baa2 issuer rating gia and the company’s role as the state’s agent in The position of Energy Minister has been
vacant all the time since the appointment of the
Cabinet of PM Denys Shmyhal in March 2020,
so the ministry has had only acting heads. The
latest attempt to appoint an Energy Minister was
in December, when the Rada failed to gather
enough votes to appoint Yuriy Vitrenko. Vit-
renko, a former top manager of Naftogaz, served
as acting Energy Minister since late December.
On April 28, Vitrenko was appointed CEO of
Naftogaz.
“There is little information about the expe-
rience of Haluschenko in the energy sector, so
he seems to be a compromise figure who satis-
fies politicians from different camps, taking into
account the results of the vote in Rada. This is a
sharp contrast with the clearly pro-Western Vit-
renko, whose candidacy had no chance in the
Rada. We do not expect any significant changes
in Ukraine’s energy policy with this appoint-
ment, nor do we see the new minister as being
able to address the challenges of the sector,” an
analyst at the Kyiv-based Concorde Capital bro-
kerage said in a research note.
bne/IntelliNews, May 01 2021

P16 www. NEWSBASE .com Week 18 05•May•2021