Moody's rates SPP

Moody's Investors Service said it assigned a senior unsecured long term issuer rating of A2 with positive outlook to SPP.

Moody's said the rating reflects the company's low business risk, very strong financial profile - there is currently no financial debt - and strong shareholders.

At the same time, the rating agency said that these strengths are countered by the company's almost total reliance on Russian gas, its continuing difficulties in receivables collection and the potential for future margin pressure as a result of more challenging regulation and the development of competition.

Moody's added it views SPP's almost total reliance on Gazprom for its supply of gas to reduce its flexibility as well as creating a significant concentration of counterparty risk.

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