On March 26th, 2007, Standard & Poor’s Ratings Service granted TRANSGAZ the BB+, positive outlook, credit rating for long-term corporate loans. The positive outlook reflects the improved liquidity position following the primary initial public offering of shares planned for 2007. Moreover, such outlook reflects TRANSGAZ potential to reach investment grade as a result of the operation activity improvement, as a public entity listed on the Stock Exchange, by maintaining its credit ratios and by visibly upgrading corporate risk management practices.
Following the credit rating reviewing process, Standard & Poor’s Ratings Service raised TRANSGAZ long-term corporate credit rating to BBB- from BB+. “The upgrade reflects TRANSGAZ improved financial profile, which has been enhanced by the completed initial public offering (IPO) that will fund part of the company’s medium-term investment programme. The upgrade also reflects the increased visibility and amount of operating cash flow following a significant tariff increase and the finalization of tariffs for the regulatory period through June 30th, 2012” according to Standard & Poor’s Press Release dated February 29th, 2008. The rating on TRANSGAZ is underpinned by:
* the sole licensed status of the National Transmission System operator
* the predictable cash-flows generated from regulated transmission activities
* the company’s strong financial profile.
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