Fitch cuts Slovensky Plynarensky view to negative

Fitch Ratings said it revised Slovensky Plynarensky Priemysel, AS's outlook to negative from stable.

The agency also said it affirmed its long-term foreign- and local-currency issuer default ratings at A.

The negative outlooks reflect the group's heightened business risk due to rising competition in the Slovak gas supply market and suboptimal regulated household tariff increases, Fitch said.

The agency said it expects that earnings deterioration within the company's gas supply division will persist until the economic recovery in Slovakia and neighboring countries transpires into healthier gas demand and supply margins.

A change in its contractual obligations to Gazprom may alleviate the pressure on the company's business risk, Fitch added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.