Fitch cuts eustream

Fitch Ratings said it downgraded eustream, as' long-term issuer default and senior unsecured ratings to BBB from BBB+ and kept them on rating watch negative.

“The downgrade reflects our view of substantially higher risk to eustream' long-term ship-or-pay contracts with Gazprom and the deterioration of the key counterparty's credit quality.

“Our view follows the progressive escalation of sanctions between the E.U. and Russia, which could prevent the receipt of scheduled payments from Gazprom in case of further measures, and from E.U.'s firm commitment to strongly reduce its reliance on Russian gas. While eustream's infrastructure could accommodate alternative flows, and thus receive capacity bookings also to service eastern and southern Europe in the medium term, visibility on this is currently limited,” the agency said in a press release.

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