Fitch puts Slovensky Plynarensky on negative watch

Fitch Ratings said it placed Slovensky Plynarensky Priemysel, as's A- foreign- and local-currency long-term issuer default ratings on Rating Watch negative.

The watch placement follows a resolution of the government of Slovakia regarding the ownership change of the company and its key subsidiaries, Fitch said.

The government, which is the 51% shareholder of Slovensky Plynarensky, does not intend to exercise its right to purchase the 49% owned by Slovak Gas Holding, in turn owned by GDF Suez and E.ON Ruhrgas, which intend to dispose of their stakes in Slovak Gas, Fitch said.

Until the resolution was announced, Fitch said it assumed that any ownership change in Slovensky Plynarensky would not change its internal group structure and cash flows and that dividends would be paid up to 100% of net consolidated income.

It now appears that the government could eventually buy the 49% stake in Slovensky Plynarensky, which may lead to a restructuring of its ownership, the agency said.

© 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.