Fitch assigns DTEK Oil & Gas B-

Fitch Ratings said it gave DTEK Oil & Gas BV a first-time long-term issuer default rating of B- with a stable outlook. Fitch also assigned DTEK O&G's notes, issued by NGD Holdings BV, a senior unsecured rating of B- with an RR4 recovery rating.

“The B- rating is constrained by the company's small scale of operations as a gas and gas condensate producer in Ukraine, moderately high leverage and evolving corporate governance practices, including a complex group structure and related party transactions,” Fitch said in a press release.

“The rating also reflects moderate production costs supporting stable profitability, good 1P reserve life, a reserve replacement ratio above 100%, providing the necessary basis for sustaining the production profile and satisfactory liquidity,” the agency said.

NGD Holdings issued $425 million in new notes, with $50 million annual amortization from Dec. 31, 2023 and maturity at Dec. 31, 2026. The notes benefit from guaranties and suretyships from DTEK O&G and others.

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